$18.8 billion dividends to be paid in the second quarter
Dhahran — Sunday, Aramco announced the financial results for the first quarter of 2022. The company posted a net income of $39.5 billion, an 82% year-on-year (YoY) increase. A new quarterly earnings record for Aramco since going public in 2019.
Despite increased volatility in global markets, Aramco remains focused on reliable, affordable, and sustainable energy.
Aramco has declared a Q1 dividend of $18.8 billion to be paid in the second quarter. The company also announced one bonus share for every ten shares of the company. Higher crude oil prices and volumes sold resulted in improved downstream margins.
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Aramco’s record quarterly net income of $39.5 billion is an 82% increase from $21.7 billion in Q1 2021.
Cash flow from operations was $38.2 billion for the first quarter, viz-a-viz $26.5 billion for the Q1 of 2021. Free cash flow increased by 68% Year-on-Year to $30.6 billion.
The company continues to strengthen its balance sheet, with the gearing ratio reducing to 8.0% on March 31, 2022, from 14.2% on December 31, 2021.
The decrease in gearing resulted from higher cash and cash equivalents.
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In January, Aramco decreased its total borrowings with a prepayment to the Public Investment Fund. Reducing the company’s debt by $8 billion, acquired for a 70% stake in SABIC. The prepayment has reduced financing costs.
Aramco’s $7.6 billion first-quarter capital expenditure continues to support the company’s long-term strategy realization.