Saudi Aramco cuts its dividend in $ 10 million

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Saudi Aramco recorded a fall in the benefits of the first quarter, which reduced $ 10 million to its dividend and reduce a key source of funds for the Saudi Arabian budget in the midst of an uncertain perspective on oil prices.

The world’s largest oil company’s net income dropped 5 percent from a year earlier to $ 26 million. Its average oil price made was $ 76.30 a barrel, compared to $ 83 the barrel in the same quarter of the previous year.

While the performance was better than that of some of his colleagues, including BP and Shell, the benefits of the first quarter in half and fell 28 percent respectively, respectively, Aramco Reduce your total dividend to $ 21.4 million from $ 31 million by last quarter of last year.

The group had already announced in March that its total payment this year would be about $ 85 million, abruptly less than $ 124 million it paid by 2024.

The lower payments of Aramco’s dividends will be added to the pressure on the budget of Saudi Arabia, as the Government and entities linked to the State as the Public Investment Fund spend billions of dollars to diversify the economy away from their dependence on oil revenue.

The economic diversification program launched by Prince Colonel Mohammed Bin Salman has several so-called ambitious gigaprojects, including a futuristic area on the northwest coast of the country called Neom.

The Kingdom deficit extended up to $ 15.6 million in the first quarter, up to $ 3.3 million in the same period in 2024, as oil revenue fell by 18 percent, said the Ministry of Finance on Monday.

Amin Nasser, President and CEO of Aramco, said: “The world commercial dynamics affected energy markets in the first quarter of 2025, with the economic uncertainty that affects oil prices.”

Since the end of the quarter, oil prices have dropped by 15 percent more, up to $ 64 the barrel, after US trade rates and supply fears after the OPEC+, the Saudi-led Cartelier, has increased production during the year.

Although the lowest prices of oil have pressed on Saudi Arabia, United States President Donald Trump has been welcomed, which wants to reduce costs for consumers. He also argued that the lowest oil prices will increase the pressure on Russia to end their war with Ukraine.

Trump, whose rates have led to the volatility of the market and helped to promote oil prices to go down, must visit Saudi Arabia next week as part of a regional tour.

Aramco did not give any guidance on whether he should further adjust his dividend or reduce his expense, but said that “disciplined capital planning and execution” were vital during periods of oil volatility.

Riyadh already emphasizes its expense by reducing some projects and expanding others for a longer period of time.

But the country faces a confusion of deadlines for building infrastructure before hosting a series of major events, including the 2030 Expo and the FIFA World Cup in 2034.

The main richness fund of the Government and Saudi Arabia, the PIF, has more than 97% of Aramco.

Despite the lowest prices of oil, Saudi Arabia and colleagues in the Opec+ coalition are advancing with the increase in production.

Eight this month, eight members of the OPEC+ including Saudi Arabia and Russia, said that they would increase the offer by 411,000 barrels a day in June, the second monthly increase in consecutive production.

Jorge León, at Energy Consultatancy Rystem, said at the time a “bombs” decision that reflected a group strategy change.