Decision to extra stake sale in Aramco is on gov’t: Exec

Ziad Al-Murshed, Executive Vice President and CFO of Saudi Arabian Oil Co. (Saudi Aramco)

Ziad Al-Murshed, Executive Vice President and CFO of Saudi Arabian Oil Co. (Saudi Aramco), said the Saudi government has full discretion to decide on an extra stake sale in the oil giant.

The company might consider issuing bonds, but not to support cash distributions, Al-Murshed said at the Saudi Capital Market Forum (SCMF) 2024. He noted that Aramco is currently active in bond issuances, with plans for additional offerings this year amid stable debt markets.

Aramco aims for sustainable base dividend distributions that snowball over time, with the company raising its base dividends by 4% in 2023. Meanwhile, annual dividends for this year are subject to board discussions and decisions, the executive further stated.

Since its first initial public offering (IPO), the company has managed to provide and also increase the basic portion of dividend distributions, even during the COVID-19 pandemic, he added.

Al-Murshed pointed to Aramco’s introduction of performance-linked dividends, with the board deciding to link the company's strong performance in 2022 and 2023 to additional distributions.