Saudi Aramco, a Saudi Arabian oil and gas company, announced a secondary offering (SPO) for approximately $12 bn, Bloomberg reports. The placement of securities is scheduled for June 2. The Saudi authorities plan to utilize the funds raised during the SPO to provide financial support for projects aimed at reducing the economy's dependence on oil.
The upcoming SPO will demonstrate the company's appeal to foreign investors amid ongoing discussions about the future of hydrocarbons. Saudi Aramco's substantial dividends are expected to attract investors.
Earlier, Daryo reported that Saudi Aramco announced significant dividends despite a decline in annual profits compared to the previous year. In 2023, the company paid out dividends totalling nearly $100 bn, marking a 30% increase from the previous year, as stated in its annual accounts. Despite a nearly 25% decrease in overall profits to $121.3 bn, this figure still represents the second-highest reported by Saudi Aramco.
The price of Brent crude, the benchmark oil price, experienced fluctuations, dropping from nearly $120 a barrel in the middle of 2022 to as low as $67 a barrel in 2023, before rebounding to around $82 per barrel. Despite these challenges, Aramco's profits in 2023 remain substantial, ranking second only to the record-breaking $161.1 bn reported in 2022.
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