Aramco’s shares rose 0.6% to 34.40 riyals in early trading in Riyadh, paring this year’s drop to 2.4%. The stock has been bolstered by management’s insistence that it will pay a $75 billion dividend
in 2020, almost all of which will go to the Saudi Arabian government.
Income still increased for the first time in five quarters as oil prices steadied following their battering earlier in the year as the coronavirus spread globally and demand for energy cratered.
“We saw early signs of a recovery in the third quarter due to improved economic activity, despite the headwinds facing global energy markets,” Chief Executive Officer Amin Nasser said. “We continue to adopt a disciplined and flexible approach to capital allocation in the face of market volatility.”
Although the results suggest the worst of the pandemic’s impact on energy demand may have passed, Aramco still faces a brittle market. Oil prices fell to a five-month low this week amid fresh travel restrictions in Europe aimed at stemming a surge in virus cases.
OPEC and allied producers -- who agreed to slash crude exports in April -- are weighing whether to delay an easing of those curbs to buttress crude prices.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.