The world’s biggest oil company is getting squeezed by its main shareholder, the Saudi Arabian government.
Even with crude dropping below $40 a barrel this week and its cash flow plunging, Saudi Aramco is trying to pay a $75 billion dividend this year, almost all of it to the state. Concerns are mounting, including among global fund managers who bought into the company during a record initial public offering last December, that Aramco is putting strategic projects on ice and racking up debt too quickly.
Aramco has been the country’s cash cow for decades. But the pressure it faces has been thrown into sharper relief by the coronavirus-induced collapse in energy demand — Brent crude fell another 5% on Tuesday — and now that it’s a listed firm with shareholders from New York to Tokyo.
