Saudi Aramco Projected to Suspend Performance-Linked Dividends in 2025
Saudi Aramco is expected to forgo performance-based dividend payments in 2025, following a more balanced cash flow cycle in 2024, according to a recent research note from JPMorgan. The note states that "the elevated performance-linked dividends of the past 18 months were funded by robust FY22/23 financials, but this cycle will conclude by the end of 2024." Aramco anticipates announcing total dividends of $124.3 billion for 2024, including $43.1 billion in performance-linked dividends. The Saudi government, the majority shareholder of Aramco, and the Public Investment Fund (PIF) benefit from the company's substantial dividends. PIF relies on Aramco's dividends to support its multi-billion-dollar investment strategy aimed at diversifying the economy. The government raised $12.35 billion through a secondary share offering in 2022.