Saudi Aramco intends to declare a cash dividend of $75 billion in 2020, paid quarterly. Good luck with that.

[Tom Kirkman + 8,860]

Putin is likely laughing his butt off at this news.  MbS may need to rethink his grand plan of an Aramco $75 billion cash dividend for 2020. Quelling investors may have to keep a back seat to quelling Saudi non-royal citizen discontent.  The ongoing locust plague in Saudi Arabia certainly won't help the situation.

Aramco’s 2019 profit falls 21%, plans to adjust capital spending

KEY POINTS

• Brent crude futures last traded at $33.85 per barrel on Friday, down from about $64 when Aramco listed its shares. 
• Despite a drop in income, Aramco said it paid a dividend of $73.2 billion in 2019 and intends to declare a cash dividend of $75 billion in 2020, paid quarterly. 

[wrs + 893]

LOL!  This is the reason everyone is dumping oil stocks.  They are all assumed to be cutting their dividends.  Stupid, Stupid, Stupid.  MBS is an idiot.

[Gerry Maddoux + 3,627]

No, he’s a psychopath.

[Gerry Maddoux + 3,627]

Some say this war between Putin and MbS was the “death rattle of OPEC.” That they will destroy themselves. Couldn’t happen to a more deserving pair of hombres. 

[BLA + 1,666]

4 hours ago, Gerry Maddoux said:

Some say this war between Putin and MbS was the “death rattle of OPEC.” That they will destroy themselves. Couldn’t happen to a more deserving pair of hombres. 

Russia wining market share in China.

They have to defend their turf in Western Europe.  Russian oil companies sell 80% of their Europe market on the Spot Market.  Going to be battle.

 

Edited March 15, 2020 by BLA

[BLA + 1,666]

4 hours ago, Gerry Maddoux said:

Some say this war between Putin and MbS was the “death rattle of OPEC.” That they will destroy themselves. Couldn’t happen to a more deserving pair of hombres. 

Saudis economy 80% oil

Russia economy 45% oil & gas. 

Edited March 15, 2020 by BLA

[wrs + 893]

2 hours ago, Gerry Maddoux said:

No, he’s a psychopath.

Why can't he be both?  😀

[0R0 + 6,251]

I think MBS is neither a psycopath (at least not in regard to the scheme to pressure Russia into production cuts) nor an idiot. His scheme is viable, and though the Saudi economy is more oil dependent, its finances and those of its Royal trusts are stronger than Russia's. It is just a question of how much political capital the young MBS can afford to lose during the fight to bring Russia back to the table. 

 

[Justin Hicks + 162]

8 hours ago, Tom Kirkman said:

Putin is likely laughing his butt off at this news.  MbS may need to rethink his grand plan of an Aramco $75 billion cash dividend for 2020. Quelling investors may have to keep a back seat to quelling Saudi non-royal citizen discontent.  The ongoing locust plague in Saudi Arabia certainly won't help the situation.

Aramco’s 2019 profit falls 21%, plans to adjust capital spending

KEY POINTS

• Brent crude futures last traded at $33.85 per barrel on Friday, down from about $64 when Aramco listed its shares. 
• Despite a drop in income, Aramco said it paid a dividend of $73.2 billion in 2019 and intends to declare a cash dividend of $75 billion in 2020, paid quarterly. 

Certainly going to be better than anything you see from US Shale...😊

[Ward Smith + 6,615]

IIRC, when the arm twisting was going on to get Saudi royals to reinvest in the company that has paid them so handsomely for decades, the promise made was to see their investment pay off in dividends and a two fer in equity down the road. I only know one billionaire closely, and when his net worth was only hundreds of millions he already had a $100k per month "nut". That's just what he was spending on caretakers and taxes and who knows what all. People freaked out about how much Trump was spending back when he was getting a divorce (the first time) and how much he was spending when he was in bankruptcy. The big boys with their big toys are popping up a lot of the economy. 

Now think about those poor Saudi royals. They've got all those Wives and all those mistresses, and the blackmail payments and the security staff so they don't get assassinated, and the extra staff so they can try to assassinate their relatives. Life is tough on those shmoes, they need those payments like a druggie needs his drugs. Poor Aramco…

[footeab@yahoo.com + 2,192]

7 hours ago, wrs said:

LOL!  This is the reason everyone is dumping oil stocks.  They are all assumed to be cutting their dividends.  Stupid, Stupid, Stupid.  MBS is an idiot.

No, he is smart in this case: What was the REAL reason for ARAMCO going "public"(classic joke)... It went "public to .... saudi princes/ess.  All the princes were given stock instead of fixed income which was always VERY nebulous and a problem in their kingdom.  All ~15,000 "princes", now have to follow the stock price(dependent on international market) and dividends(Saudi budget) making them more in-tune to REALITY instead of demanding xyz from whomever is in charge. 

EDIT: 75B/15,000p = $5M/prince as the buy off price  $75B to keep your crown with a $275B budget... Not bad

Edited March 15, 2020 by footeab@yahoo.com

[BLA + 1,666]

58 minutes ago, footeab@yahoo.com said:

No, he is smart in this case: What was the REAL reason for ARAMCO going "public"(classic joke)... It went "public to .... saudi princes/ess.  All the princes were given stock instead of fixed income which was always VERY nebulous and a problem in their kingdom.  All ~15,000 "princes", now have to follow the stock price(dependent on international market) and dividends(Saudi budget) making them more in-tune to REALITY instead of demanding xyz from whomever is in charge. 

EDIT: 75B/15,000p = $5M/prince as the buy off price  $75B to keep your crown with a $275B budget... Not bad

ARAMCO stock Lock-up comes off in June.

Look out below.

[Ward Smith + 6,615]

Let's not forget the other devil's bargain made in the not so distant past. 

"King" Saud made the bargain with the wahabbi extremists to get "his" Kingdom. They get unrestricted power and the ability to bend Islam to their narrow 6th century view. The House of Saud gets tremendous wealth. 

What could possibly go wrong?

[footeab@yahoo.com + 2,192]

36 minutes ago, BLA said:

ARAMCO stock Lock-up comes off in June.

Look out below.

I doubt that anywhere outside of Saudi Arabia.  Or maybe ~10% to obtain a foreign capital side stream. 

Also this would divest the prince total number down as they sell off their shares for hair brained schemes allowing those who want to govern the country obtain more power.  Power Consolidation forthecoming inside Saudi Arabia is what I see happening.  Or I should say... FURTHER power consolidation.  😁