SAUDI Arabia’s Aramco’s net income increased by 124% to $110.0 billion in 2021, compared to $49.0 billion in 2020. The increase in net income reflects higher crude oil prices, stronger refining and chemicals margins, and the consolidation of SABIC’s full-year results.
Free cash flow was $107.5 billion in 2021, compared to $49.1 billion in 2020. Aramco continues to prioritize a strong balance sheet and its gearing ratio at the end of 2021 was 14.2%, compared to 23.0% at the end of 2020.
Aramco declared a dividend of $18.8 billion for the fourth quarter, to be paid in Q1 2022. The Board of Directors also recommended that $4 billion in retained earnings be capitalized and bonus shares be distributed to shareholders, subject to required Extraordinary General Assembly and regulatory approvals. Under the recommendation, shareholders would be granted one bonus share for every ten shares owned. As a result, the total dividend for 2021 is $75 billion in cash, in addition to bonus shares. The Company aims to maintain a sustainable and progressive dividend, in line with future prospects, underlying growth in free cash flow, and long-term value creation through investments in available opportunities.
