Saudi Helicopter Company Prepares to Launch Fleet

AW139 Helicopter at the first Saudi International Exhibition at al-Thumama Airport (Bashir Saleh)
AW139 Helicopter at the first Saudi International Exhibition at al-Thumama Airport (Bashir Saleh)
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Saudi Helicopter Company Prepares to Launch Fleet

AW139 Helicopter at the first Saudi International Exhibition at al-Thumama Airport (Bashir Saleh)
AW139 Helicopter at the first Saudi International Exhibition at al-Thumama Airport (Bashir Saleh)

The first national commercial helicopter operator in Saudi Arabia has showcased its chopper during the first Saudi International Exhibition at al-Thumama Airport, north of Riyadh.

The unveiling came two days after the Public Investment Fund (PIF) announced the launch of The Helicopter Company.

The chopper, the first in the company’s plan for a bigger fleet, will soon begin its trips between Saudi cities, according to the firm’s Marketing and Communication Director, Mona Kurdi.

Saudi Arabia is in the implementation phase of several giant projects, most notably the Neom, Amaala, Red Sea and al-Qidiya, in several cities in the central, western and northern regions.

It also plans to issue a tourist visa for foreigners to benefit from this vital sector that is expected to provide thousands of jobs and support the local economy.

On Monday, PIF announced the new company with initial capital of $150 million, saying it will cater to emerging demand in luxury tourism as well as untapped existing demand for urban aerial transportation.

Kurdi told Asharq al-Awsat that the company's operations will include the central, northern and western regions, saying the firm will provide access to remote destinations and a high-end experience on par with other global destinations.

The company also provides safe access to long-haul destinations and enhances economic opportunities within the tourism sector, she added.

The helicopter in question was the AW139 with five soft seats, and stamped with the company’s name both in Arabic and English. 

The Fund indicated that the firm aims at maximizing sustainable returns, launching and developing new sectors, as well as supporting efforts to achieve Saudi Vision 2030.

The budding company seeks to meet the growing demand within Saudi Arabia for luxury tourism and air transport services. 



Aramco Maintains $31 Billion in Dividends Despite Profit Decline

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
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Aramco Maintains $31 Billion in Dividends Despite Profit Decline

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)

Saudi Aramco retained its position as the world’s top dividend distributor, maintaining its quarterly payouts at $31.05 billion, despite a 15.4% year-over-year drop in third-quarter net profit to $27.6 billion, surpassing analyst expectations of $26.3 billion. The profit decline was mainly attributed to lower crude oil prices and weaker margins in its chemicals segment, though partly offset by reduced production royalties, income tax, and zakat.

According to Aramco’s data, the average oil price during Q3 2023 was $79.3 per barrel, down 11.2% from $89.3 per barrel in Q3 2022. The company’s dividend distributions include $20.3 billion in base dividends and $10.8 billion in performance-linked payouts scheduled for Q4.

Aramco’s CEO, Amin Nasser, highlighted the company’s strong net income and free cash flow despite the lower oil prices. He affirmed Aramco’s commitment to maintaining positive momentum and strengthening its position as a global leader in energy and petrochemicals.

In remarks to Asharq Al-Awsat, Mohammed Al-Farraj, Senior Asset Management Officer at Arbah Financial, explained the 15.4% profit decline was driven by several factors, primarily lower crude oil prices, which directly affect Aramco’s revenue and profits. Additionally, the chemicals and refining businesses faced weak profit margins due to challenges like rising operational costs and a global demand slowdown. Economic factors such as inflation and higher interest rates also impacted energy demand, pressuring Aramco’s earnings.

Al-Farraj further noted that while oil price drops reduce Aramco’s revenue and impact refining margins, the chemicals sector faces additional challenges from higher raw material and energy costs, as well as intense competition. Despite these challenges, Aramco remains committed to its generous dividend policy, reflected in its substantial quarterly payout of $31.05 billion.

Aramco’s stock remained stable, trading at SAR27.55, up by about 0.2%. According to Al-Farraj, investor confidence in Aramco is bolstered by its financial strength and regular dividends, with strong growth prospects in renewable energy and petrochemical investments.

Energy researcher and OPEC Research Fellow Dr. Youssef Al-Shammari added that Aramco has become more resilient and less dependent on oil prices for profitability. He noted that Aramco’s financial and investment strategies make it less vulnerable to oil price fluctuations. Additionally, he pointed out a general decline in global refining margins due to weaker global demand.