Saudi Aramco to pay $13.4 bln dividend for Q3 2019

State-owned Saudi Aramco will pay an ordinary cash dividend of $13.4 billion (SAR 50.25 billion) for Q3 2019, the company said today after announcing intention to proceed with its IPO.
 

The third quarter cash dividend will stand at $0.067 per share (SAR 0.25 per share) based on its capital, which is divided into 200 billion shares.
 

The world's largest oil producer will announce an interim (ordinary) dividend of $3.9 billion (SAR 14.63 billion) for the period starting from the final allocation of IPO shares for institutional and retail investors until Dec. 31, 2019.
 

This dividend, which will be financed from the company's cash on hand, will be paid at $0.019 per share (SAR 0.073 per share).
 

The major oil producer will pay an interim (ordinary) dividend at a maximum of $9.5 billion (SAR 35.63 billion) after obtaining the board of directors' approval. The dividend will be paid ahead of the IPO allocation date.
 

Such dividend will be paid to the government - the only shareholder in the company. Participants in the IPO will not be eligible for any share of this dividend, regardless of the payment date.
 

If the company decides, for any reason, to pay an ordinary dividend exceeding $9.5 billion, subscribers will be entitled to a share in the dividend pro rata.
 

In such case, the record date for the portion of those dividends will be the first date, on which the shares are traded on the exchange and investors.
 

Aramco said today its board of directors has sole discretion to declare dividends, based on the dividend policy, financial performance and balance sheet targets.

The board will declare an intention to distribute an annual base dividend of $75 bln for 2020.

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