In response to the ongoing oil slump, Saudi Arabian Oil Company (Saudi Aramco) lets go employees to focus on the long-term growth.
As per reports, the oil giant’s net profit in the Q1 of 2020 fell to 62.5 billion Saudi riyals by 25% due to the sharp decline in the crude demand in Covid-19 pandemic. Further, Saudi Aramco also cut its capital expenditure program for the current year from the initial goal of $40 million to anywhere between $25 million and $30 million.
Despite the plunging oil prices and turbulent impact of the coronavirus pandemic, the company stills plans to fulfill $75 billion dividend this year for shareholders, making the decision on Thursday. The dividend will amount to $18 billion for the first quarter.
As per CEO of Aramco, Amin Nasser, the dividend will be a sum of both firm’s cash and by tapping into debt markets.
The following months since the pandemic has seen the worst monetary downturn for the kingdom in decades, with the double whammy of the pandemic and slump in oil demand and costs.
By August 2, the oil giant will have to shell out $7 billion despite the payments being stretched out.