Saudi Aramco plans to give a $124B dividend this year to its shareholders, larger than Reliance's entire revenue Dividend is equal to the next 9 largest dividends for 2024 combined, 5x Apple and Microsoft each Data may be the new oil, but oil generates enormous cash
Sameer Saifi
3mo
To put $124B in perspective, you could spend $1 million every single day for over 340 years and still not run out of money.
Amit Trivedi
3mo
When Reliance was split, the party with RIL (oil and petrochem) had the cash cow while the other party had companies requiring cash (mobile services etc) and we know how it played out.
Lohith Reddy
3mo
Clever strategy to keep their investors away from divesting and being carried away due to decarbonisation momentum !
Nice one! Separately, always found the data/oil analogy tricky - there is too much of data and too little oil :)
Armaco's dividends can buy all big Indian oil PSUs (ONGC $49b, Indian Oil $29b, Hindustan Petroleum $10b, GAIL $17b) with $19b change!!😅 Undoubtedly & unfortunately, Oil will remain major wealth & energy generator till I die with current rate of renewable enregy adoption.
You're right—despite the growing emphasis on alternative energy sources, oil remains a dominant force in the global economy. It's deeply integrated into the infrastructure, transportation, and industries worldwide. Transitioning away from oil will require substantial investments, technological advancements, and political will, particularly from developed nations that have historically relied heavily on oil. These countries will need to lead by example in developing as well as disseminating renewable energy technologies, not to mention, implementing policies that encourage the reduction of carbon emissions. The shift will also involve a complex balancing act to ensure that the economic and social impacts are managed carefully, especially in regions heavily dependent on oil production and consumption. While the momentum for renewable energy is building, the scale of change required to dethrone oil is indeed enormous and will take time.
It's more of "shareholder" than "shareholders" as the state owns most shares and like all other countries is always in need of more money :)
Deep Chowdhury
3mo
Sorry to say this comparison doesn't make sense at all 1. Tech industry hasn't matured first and then tech industry is always innovating vs. Saudi Aramco which can only expore new territories / invest in optimization & may be small amount of capex in drilling etc. 2. Profit margins across industries differ & if you look at tech they need to reinvest to stay updated whereas Aramco can easily transfer back to the shareholders as they only need to reinvest a smaller amount may be on oil rigs exploration or field acquisition!!
Aditya Raghunath
3mo
I dont think its a fair comparison. Tech giants reinvest the cash flows for future growth while energy companies typically pay a dividend.
Principal Software Engineer at Red Hat
3moYet, it's stock has given -18% returns in 1 year and -8% returns over the last 5 years. :)