RIYADH: Following record first-quarter results by Saudi Aramco, Al Rajhi Capital said it expects the oil giant to maintain dividends at 2021 levels this year.
The annual dividend per share is anticipated at SR1.4 ($0.4), the same as last year’s payout, although it can potentially raise it to SR1.7 per share, the investment firm said in a recent report.
Saudi Aramco recently posted an 82 percent profit surge from SR81 billion to SR148 billion for the first quarter of the ongoing year — the highest since its listing in 2019.
Al Rajhi Capital had earlier forecasted a slightly lower profit of SR140 billion for the oil major.
It attributed the above-estimate profit to lower production costs in addition to a 30 percent jump in oil prices, driven by strong energy demand, low crude inventories, and geopolitical factors.
“We believe we are still far away from the peak of oil demand globally, which could be upwards of 110 million barrels per day by 2030, when Aramco could increase its market share to 10 percent, to 11 million barrels per day,” said Mazen Al-Sudairi, financial analyst at Al Rajhi.
“Our target price for the stock remains unchanged at SR42 per share,” he added.
