Saudi Aramco takes action, the first of its kind in its history

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Sputnik

The Saudi Aramco oil group announced a measure, the first of its kind, at a time when the giant company aims to raise funds in order to finance the distribution of profits to its shareholders.

Aramco said in a statement published on the website of the local financial market, Tadawul, that it is in the process of the first offering of Islamic sukuk in dollars, indicating that the offering process will continue until June 17, without specifying the value of the offering, which it said will be “depending on market conditions.”

The offering comes after two previous offers to sell bonds that were not compliant with Islamic law, the first amounting to a total of $12 billion in 2019, and the second of $8 billion in November of last year.

The company is raising funds to help pay an annual dividend of $75 billion, a major revenue stream for the Saudi government, Aramco’s largest shareholder.

On Tuesday, the Saudi company announced that its profits during the first quarter of this year amounted to $21.7 billion, compared to $16.7 in the same period last year.

The company’s statement explained that the result obtained is due to the improvement of the economic situation in the world, as well as the state of the oil market, and the high margins of oil refining and petrochemicals, which partially offset the decline in production.

In terms of operating results, Aramco produced 11.5 million barrels per day of oil equivalent in the first quarter, including 8.6 million barrels per day of oil alone.





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