Saudi Aramco is considering selling assets to raise funds for its global expansion and support ongoing operations, sources familiar with the matter told Reuters.
According to the report, Aramco has asked investment banks to propose strategies to generate cash from its assets. Two sources added that such sales could also help the company improve operational efficiency and cut costs.
The move comes as Aramco faces financial pressure following a decline in profits. On Tuesday, the state oil giant reported a drop in full-year net income for 2024, posting $106.2 billion compared to $121.3 billion in 2023. The fall was driven by lower oil prices and ongoing production cuts under the OPEC+ agreement.
Adding to the pressure, Aramco also announced a 30% reduction in its total dividend payout for this year. While the base dividend for the fourth quarter rose 4.2% year-over-year to $21.1 billion, the performance-linked dividend fell sharply to just $200 million—signaling the impact of weaker oil markets.
Aramco plays a critical role in Saudi Arabia’s economy, contributing the bulk of government revenue. However, the Kingdom’s rising public spending and ambitious development projects have pushed the budget breakeven oil price above $90 per barrel. This is despite Aramco’s low production costs from its conventional oilfields.
As a result, Saudi Arabia posted a $15.6 billion budget deficit in the first quarter of 2025—more than half of the finance ministry’s forecast for the entire year. Aramco’s asset sale initiative is seen as part of a broader effort to support national finances and maintain investment momentum amid tighter oil revenue.
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