Saudi Aramco Keeps Cash Dividends Unchanged But Issues Bonus Shares

Aramco said it plans to issue bonus shares after keeping annual cash dividends unchanged from a year earlier at US$75 billion. Shareholders will receive one bonus share for every ten shares owned after maintaining US$4 billion in retained earnings, a bourse filing showed.

“We intend to maintain a sustainable and progressive dividend in line with future prospects,” said CEO, Amin Nasser. “We have a lot of unique opportunities that are available to us and we intend to take every advantage of them to create share additional shareholder value,” he added.

Shares of Aramco surged almost 4% to near a record high of SR43.45 (US$11.60) at 10:45 a.m. Saudi time, up from the previous close of SR41.85 (US$11.17). This followed the oil major's 124% profit surge in 2021, topping the average of analysts’ expectations.

Profits of the Saudi firm, which holds the second-largest market value globally of $2.3 trillion as of Mar. 20, reached SR412 billion (US$110.006 billion), compared to SR183 billion (US$48.862 billion) a year earlier. The oil giant benefited from rising oil prices which continue to soar to date and traded this year at levels not seen since 2014.