going to start with Saudi Arabia and aramco the state- possessed oil painting company alternate quarter gains they are tumbling by further than a third from last time’s record highs why well two reasons lower crude oil painting prices and thinner perimeters in refining oil painting it did still raise its payout to shareholders with nearly 30 billion bones
In a performance tip well we can speak now to our Middle East business pressman
Samir Hashmi now Samir the Saudi State remains overwhelmingly aramco’s biggest shareholder so I guess it’s Saudi winning again then well that is right I mean so the Saudi government owns around 90 percent of the company and the tip payout not you know the bulk of it’ll go to the Saudi government uh and it’s not a surprise because if you look at aramco every quarter they have been paying about19.8 billion bones as tip what they’ve done is this time that they’ve added uh another 50 to that quantum in the form of this performance link tip which they say is because the cash overflows were relatively healthy and that is the reason they decided to increase that overall tip income which will be surely relatively salutary for the Saudi government because it relies heavily on the aramco
You know generating earnings for it and that will help them in their all diversification program they’re erecting these Mega structure systems new sightseer destinations all this has been done uh keeping in mind that oil painting demand will decline in the decades to come and they’ll have to come up with new profit aqueducts so when it comes to those systems this income is relatively critical well this is It’s really intriguing isn’t it because it’s these oil painting gains being reinvested into green energy systems they’re a huge reverse of green energy systems right across the world
They’re still limiting Supply they’re one of the countries in OPEC plus are not they and they’re sort of limiting force when it comes to oil painting and they’ve been doing this since late last time what’s the explanation for that I suppose the Saudis are the leaders of OPEC plus which is the oil painting combination and they’re also the largest exporters of oil painting in the world uh about 10 million their capacity is about 11 million barrels or a little uh over that now what the Saudis are seeing is that oil painting prices have been going down uh they’ve been swimming around 75 bones
for utmost of the time for the Saudis to make plutocrat to be suitable to break indeed they need oil painting prices to be at about 80 to 85 bones and that is why they’ve freely cut oil painting product by one billion barrels since July because they want the oil painting force to strain a bit which could prop up prices and that is why they’ve gone ahead and extended those cuts anticipating that prices may go over now the reason behind that’s because Saudi is an OPEC and other International agencies anticipate oil painting demand to actually decline due to the profitable headwinds and uh because of tensing financial policy this is having an impact on businesses across the globe and the alternate reason is China now China is the largest consumer of oil painting in the world now numerous oil painting companies and oil painting exporters had anticipated that demand would really zoom in China once they open and the country post covet but that hasn’t really happed the recovery hasn’t been that Swift which is why there are enterprises that oil painting demand could decline uh in in the in the alternate half of the time and now lots of people um around the world hear to this may not actually be familiar with Saudi aramco we are we’re more familiar maybe with companies similar as Apple similar as Google meta for illustration
But this is a huge huge company that in fact dwarfs numerous of the better given companies around the world well that is right Saudi aramco is one of the largest uh intimately listed companies in the world uh it’s a request value is in trillions one of the many companies and the reason is that it’s the largest exporter of oil painting in the world uh and Saudi Arabia as a country sits on about 16 to 17 percent of all reserves in the world so that makes saw these a veritably significant request when it comes to energy and Saudi aramco being the main public oil painting company uh they’re the bones
who are exporting and pumping that oil painting so that makes them one of the most significant companies in the world
