The Saudi Aramco logo pictured at the company's oil facility in Abqaiq, Saudi Arabia ReutersThe company is sticking to a promised $75 billion annual dividend that will go almost entirely to the governmentOil giant Aramco, whose dividend remains vital to helping Saudi Arabia contain a huge deficit, may have to sell assets and borrow more to fulfil its fiscal role amid uncertainty in oil prices, market specialists said. Though its profits plummeted this year as oil prices tumbled during the COVID-19 pandemic, the company is sticking to a promised $75 billion annual dividend that will go almost entirely to the government. “They can adjust the dividend to government lower, but they are more likely to maintain or increase the $75 billion and borrow if needs be,” said James Reeve, chief economist at banking firm Samba Financial Group. With oil prices at $50 per barrel or above, Aramco should be able to fund the $75 billion dividend and capex from operating cash flows, said Dmitry Marinchenko, senior director at Fitch. Finance Minister Mohammed al-Jadaan said as Aramco has become a public company, discussing projections would be very sensitive.

Source: Dhaka Tribune December 17, 2020 15:56 UTC