Announcing the date of Aramco's dividend distribution... The date of payment and eligibility - Energy

Many investors and observers are awaiting the date of distributing Aramco’s profits, after the oil giant announced, last Sunday, May 15, the profits of the first quarter of 2022.

The Saudi company revealed – in a statement on its website – an increase of about 82% in net profits for the first quarter, approaching analysts’ expectations, which were referring to reaching $38.5 billion.

During the first three months of 2022, the company benefited from the volatility in global energy markets, and the high oil prices following the Russian invasion of Ukraine.

Aramco – the most market-valued company in the world today – recorded a net profit of $39.5 billion for the quarter ended March 31, compared to $21.7 billion in the same quarter of the previous year.

Aramco dividend date

The largest oil company in the world announced the distribution of cash dividends to shareholders, amounting to 18.8 billion dollars for the first quarter of this year.

The company said that the share of the dividend will amount to 0.3198 Saudi riyals to the nominal value of the share.

Aramco dividends
Saudi Aramco logo – photo from Reuters

She clarified that the due date for the profits of the first quarter of 2022 is May 23, and the payment date for investors has been set, corresponding to June 8, 2022.

The company indicated that the number of shares due for dividends is 219 billion and 912 million and 175 thousand and 517 shares.

Since the beginning of this year, the company’s shares have increased by 37%.

Aramco profits

The first quarter profits showed a net income of $39.5 billion, and this figure represents the highest quarterly profit for the oil giant since 2019, after the Saudi government put it up for public subscription on the Riyadh Stock Exchange.

The company said the profits were supported by oil prices and the expansion of “downstream” profit margins (refining, processing, marketing and distribution).

For his part, Aramco CEO and Chief Executive Officer, Amin Hassan Al-Nasser, said in a statement that the company made progress during the first quarter in the downstream sectors in both Asia and Europe, stressing continuing to develop opportunities to complete growth and development goals, according to Reuters.

Nasser said that the company continues to focus on providing a vital and key role to help meet global demand and secure sustainable and affordable supplies, in light of the escalating volatility in global markets, explaining that Aramco is heading to increase its production capacity to meet the expected growth in demand.

Aramco shares

Once the earnings were disclosed, Aramco shares jumped 1.85% on Sunday, May 15, with a value of 41.40 Saudi riyals ($11.4) per share.

Aramco dividends
Aramco facility in Ras Tanura – Photo from The New York Times

At the same time, Aramco shares have risen since the beginning of 2022, and this made it the most valuable company in the world last week, with the market value of Aramco shares reaching $2.43 trillion.

The company said it maintained cash dividends to shareholders for the fourth quarter of 2021, amounting to $18.8 billion.

Meanwhile, oil prices rose to a 14-year high of $140 a barrel in March following the Russian invasion of Ukraine.

Crude prices later fell as Russian oil continued to flow, and the return of shutdowns in China, the world’s largest importer, resulted in a decline in consumption.

Aramco’s record dividend results come after the recovery in economic activity and the easing of global restrictions due to the Corona pandemic.

Saudi Arabia, the world’s largest oil exporter, recorded its fastest economic growth in a decade during the first quarter of the year, and gross domestic product grew by 9.6% compared to the same period last year.

The International Monetary Fund expects the Kingdom’s economy to grow by 7.6% this year on the back of high oil prices.

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