First-quarter income slides at Saudi Aramco

Oil giant Saudi Aramco has reiterated plans to pay out more than $120bn in dividends this year, despite a slide in first-quarter income.

Net income at the Saudi Arabian firm fell 14% in the three months to March end, to $27.3bn, largely due to lower oil prices. It was, however, largely in line with analyst estimates.

Cash flow from operating activities also eased, falling to $33.6bn from $39.6bn a year earlier.

Chief executive Amin Nasser said: "Our first-quarter performance reflects the resilience and strength of Aramco.

"We also continue to execute our long-term strategy and made significant progress on expanding our gas business and growing our globally integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders."

Saudi Aramco is 82%-owned by the Saudi Arabian government, which relies heavily the firm’s payouts.

Saudi Aramco said that both the first-quarter base dividend of $20.3bn and the fourth performance-linked dividend distribution of $10.8bn would be paid in the second quarter.

It also reiterated plans to pay out total dividends of $124.3bn in the current year.

Nassar continued: "Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges but at the same time recognises the need for affordable, reliable and flexible energy supplies."

Saudi Arabia is the world’s biggest oil exporter. But it is increasingly looking to diversify the economy away from its reliance on fossil fuels.