Saudi Aramco CFO forecasts substantial dividend boost ahead of 2023 financial results

Saudi Aramco’s Chief Financial Officer, Ziad Al-Murshed, hinted on Monday at an impending substantial increase in dividends.

This disclosure comes amidst anticipation surrounding Aramco’s forthcoming financial report for the year 2023, scheduled to be unveiled on March 11. Notably, the oil behemoth had posted a record net income of SR604.0 billion ($161 billion) in 2022, marking its most profitable year since its listing in the capital market. This stellar performance was underpinned by robust oil prices, buoyant product sales volumes, and enhanced profit margins for refined products.

Speaking at the Saudi Financial Market Forum, Al-Murshed revealed that the state-owned corporation is contemplating issuing bonds within the current year. “The company will prioritize medium to long-term bonds, spanning durations from 15 to 50 years,” he articulated. In response to inquiries regarding the potential sale of new shares, the senior Aramco official reaffirmed that such a decision rests with the company’s ownership, albeit underscoring the company’s perpetual readiness for such measures. This statement aligns with recent remarks by Saudi Aramco CEO Amin Nasser, who emphasized that any decision pertaining to the sale of additional Aramco shares in the ongoing year lies within the purview of shareholders.

The anticipated surge in dividends signals a positive trajectory for investors and stakeholders alike, underscoring Aramco’s commitment to maximizing shareholder value amidst evolving market dynamics. This announcement follows a series of strategic initiatives undertaken by the oil giant to fortify its financial standing and expand its market reach. Notably, Aramco’s unwavering resilience amid fluctuating global economic conditions has positioned it as a cornerstone of stability in the energy sector, amplifying investor confidence and bolstering its reputation as a reliable investment avenue.

As the anticipation builds ahead of the impending financial disclosure, market analysts and industry experts are closely monitoring Aramco’s performance, poised to assess the implications of its financial results on global energy markets and investment landscapes. The forthcoming announcement is anticipated to provide valuable insights into Aramco’s operational efficacy, financial resilience, and strategic outlook, serving as a barometer for the broader energy industry’s trajectory amidst prevailing geopolitical and economic uncertainties.

With expectations running high, stakeholders await the unveiling of Saudi Aramco’s 2023 financial results, poised to glean insights into the company’s fiscal health and strategic direction. Against the backdrop of mounting global energy demand and evolving market dynamics, Aramco’s forthcoming disclosures are poised to resonate beyond financial circles, shaping perceptions of the energy sector’s resilience and adaptability in an era defined by unprecedented challenges and opportunities.