Saudi Aramco, the majority state-owned oil firm of Saudi Arabia, announced a significant dividend payout of $97.8 billion in 2023, surpassing the size of Nigeria’s entire 2024 budget, which stands at $34 billion. This highlights how a well-managed oil company can contribute to a robust economy by providing a substantial dollar supply.
Despite a 25 per cent decline in profit to $121 billion compared to the previous year, attributed to lower oil prices and production cuts, Saudi Aramco’s dividend payout remains remarkable. The company’s performance, although affected by various factors, demonstrates its resilience and ability to generate substantial returns for shareholders.
While facing challenges with dollar remittance practices amid Nigeria’s foreign exchange crisis, Saudi Aramco continues to remain optimistic. Aramco’s CEO, Amin Nasser, emphasized the resilience of the global oil market amidst economic headwinds and geopolitical uncertainties. With expectations of continued growth in oil demand, Aramco anticipates a healthy performance in the coming year, contributing to its significant dividend payouts and overall financial strength.
Source: Business Day