Saudi Aramco Keeps Dividend Even as Oil Crisis Hits Profit

The video discusses Saudi Aramco's financial performance, highlighting a $75 billion revenue with a $19 billion dividend payout despite a 25% profit drop due to a price war and the COVID-19 pandemic. The importance of dividends for Saudi Aramco, which is largely government-owned, is emphasized. Saudi Arabia's financial crisis has led to austerity measures and production cuts. Credit Suisse notes that low oil prices will generate insufficient revenue to cover the government's budget. The video concludes with the challenges facing the oil market and the impact on future earnings.

What was the total annual dividend payout announced by Saudi Aramco?

• $50 billion

• $75 billion

• $19 billion

• $100 billion

Why is the dividend particularly crucial for Saudi Aramco?

• It is a major source of revenue for the Saudi government.

• It supports their research and development initiatives.

• It helps in expanding their global operations.

• It attracts more foreign investors.

What percentage of Saudi Aramco's shares does the Saudi government own?

• 50%

• 98%

• 100%

• 75%

What is the expected revenue from Aramco for the Saudi government given the low oil prices?

• $300 billion

• $200 billion

• $133 billion

• $250 billion

What are the two main challenges facing the oil market as mentioned in the transcript?

• Environmental concerns and technological changes

• Increased competition and regulatory issues

• Twin supply shock and demand destruction

• High production costs and low demand