Saudi Aramco plans mechanism for performance-linked dividends along with base dividend

Logo of Saudi Aramco

Saudi Aramco plans to introduce a mechanism for performance-linked dividends, in addition to the base dividend it currently distributes.

In a statement to Tadawul, the company said it targets such performance-linked dividends to range between 50% and 70% of Saudi Aramco Group’s annual free cash flow, net of the base dividend and other amounts including external investments, to be determined with the annual results.

All dividends, including performance-linked dividends, are declared at the board’s sole discretion, after considering the company’s financial position and ability to fund commitments including growth capital plans, in line with the applicable dividend policy.

These performance-linked dividends are intended to be distributed on a quarterly basis, the statement added.