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Aramco Plans to Pay Base Dividend of $75 Billion in 2020

Aramco Plans to Pay Base Dividend of $75 Billion in 2020

Tuesday, 1 October, 2019 - 05:15
FILE PHOTO: Logo of Saudi Aramco in Manama, Bahrain, March 7, 2017. REUTERS/Hamad I Mohammed/File Photo

Saudi Aramco plans to pay a base dividend of $75 billion in 2020, it said in a corporate overview posted to its website on Monday.

It paid out a $20 billion special dividend in the first half of the year on the back of an “exceptionally strong financial performance” in 2018, the company said in August.

It said Monday that if the total dividend falls below $75 billion between 2020 and 2024 it will prioritize payouts to non-government shareholders.

The company plans to announce its intention to float later this month with the aim of selling shares on the Riyadh stock exchange as soon as November, Bloomberg reported.

Aramco is planning to select about 15 bookrunners in total, sources have said.

Also Monday, the chief executive officer of Aramco’s trading arm, Ibrahim Al-Buainain, said the oil giant has restored full oil production and capacity to the levels they were at before attacks on its facilities on Sept. 14.

Oil output capacity was restored on Sept. 25, he told a conference in the United Arab Emirates' city of Fujairah.

The attacks targeted the Abqaiq and the Khurais plants, causing a spike in oil prices, fires and damage that halved the crude output of the world's top oil exporter, by shutting down 5.7 million bpd of production.

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