Aramco will pay out a record high dividend of $29.38bn this quarter as the firm introduces its performance-linked divided on top of the existing $19.51bn base dividend. The 57% year-on-year rise comes amid declining earnings and free cash flow as oil prices have softened since 2022’s peak, and with the government the largest shareholder it will provide a welcome injection of revenue for the budget.

Oil companies across the globe reported lower earnings for Q2 amid relatively subdued oil prices. For Aramco, net income came in at $30.08bn last quarter, down 38% from the record $48.44bn set in 2Q 2022. The average price for Aramco’s crude oil dropped from $113.2/B to $78.8/B over the period, while total hydrocarbon output of 13.5mn boe/d was slightly down from 13.6mn boe/d as fresh Opec+ cuts crimped crude oil output. (CONTINUED - 941 WORDS)