Higher Oil Prices, Greater Volumes Lift Aramco Earnings; Approves Bonus Share

Aramco reported net income of $39.5 billion during the first quarter compared with $21.7 billion the year before on higher oil prices and volumes and stronger refining margins. Free cash flow increased to $30.6 billion in the quarter compared with $18.3 billion the year before. Net debt and gearing fell to $33.0 billion and 8.0%, respectively, from a net debt of $56.4 billion and gearing of 14.2% at year-end 2021. Aramco paid $18.8 billion in dividends during the quarter, or $0.09 per share. The regular dividend will likely remain unchanged in future quarters, but another special dividend like the one paid last year is likely given the strong financial performance. Also, Aramco approved the distribution of one bonus share for every 10 shares.