The Clap
Saudi Aramco has increased its dividend payout to investors and the Saudi government by over 50%, providing financial support to the government which had expected a budget deficit.
What
Despite a decrease in profits due to lower oil prices, Aramco will pay out $29.4 billion, up from $18.8 billion the previous year.
So What
This move is in line with other oil producers who increased payouts even amid declining profits. The Saudi government relies on Aramco’s funding, and this dividend increase aids its plans for economic diversification.
Now What
Aramco is also investing in China’s market and is set to continue with expansion plans despite increased dividend payouts.
