Aramco Signals Sharply Lower Dividends After 2024 Profit Drop.
Aramco's 2024 profit drops over 12% to $106.2 billion, signaling nearly 30% lower dividends for 2025, as average realised oil prices fell to $80.2 in 2024. The company has long been a cash cow for the Saudi state, but this year's dividend cut may indicate a shift in the kingdom's fiscal strategy. As Aramco continues to invest heavily in its future, the reduced payouts may also signal a more conservative approach to cash management.
- The reduction in dividends could have far-reaching implications for the global economy, as lower oil revenues impact government spending and economic growth.
- How will the Saudi government balance its finances with the ongoing decline in oil prices and revenue, potentially leading to increased taxes or austerity measures?