Investing.com -- State-backed oil group Saudi Aramco (TADAWUL:2222) has stood by its plan to deliver $31 billion in dividends to the Saudi government and its other shareholders despite posting a 14% fall in first-quarter earnings.
Net income for the three months ended on March 31 was $27.3 billion, down from $31.9B a year ago. Analysts had seen the figure at $27.6B, according to estimates compiled by the company that were cited by various media sources.
Aramco said its returns were dented in part by lower crude oil volumes sold and weakening refining and chemicals margins, which were only partially offset by an increase in oil prices compared to the corresponding quarter last year.
"Overall, Aramco reported an in-line set of results, without changes to guidance or shareholder remuneration plans," analysts at Morgan Stanley said in a note to clients on Tuesday.
In a statement, Chief Executive Amin Nasser said that the results reflect "the resilience and strength" of the business.
"We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally-integrated downstream value chain," Nasser said.
Aramco noted that its base dividend for the first quarter would come in at $20.3B, adding it would also roll out a performance-linked distribution of $10.8 in the current quarter.
These payouts are seen as crucial for Riyadh, which holds an 82.2% stake of Aramco as well as an additional 16% via the country's sovereign wealth fund.