Saudi Aramco Sticks With Dividend Even as Profit Slumps

The transcript discusses Aramco's commitment to paying dividends despite low oil prices, highlighting its resilience. It covers adjustments in capital expenditures to conserve cash and the financial implications of acquiring SABIC. The discussion also touches on Aramco's financial strategies, including potential borrowing and the use of revolving credit, as it anticipates a recovery in oil prices.

What is the significance of Aramco's commitment to paying dividends despite low oil prices?

• It suggests a decrease in production capacity.

• It indicates a reduction in government support.

• It demonstrates Aramco's resilience and commitment to shareholders.

• It shows the company's financial instability.

How has Aramco adjusted its capital expenditure plans for 2020?

• Increased CapEx to $50 billion.

• Maintained CapEx at $40 billion.

• Reduced CapEx to a range of $25 to $30 billion.

• Eliminated CapEx entirely.

What challenge does Aramco face with the SABIC acquisition?

• SABIC's decreased value and potential impairment charges.

• SABIC's increased market value.

• SABIC's high profitability.

• SABIC's expansion into new markets.

What financial strategy does Aramco have in place for difficult situations?

• Issuing more shares.

• Drawing on a $10 billion revolving credit facility.

• Selling off assets.

• Reducing employee salaries.

What is Aramco's outlook on oil demand for the second half of the year?

• Demand is expected to decline further.

• Demand is expected to improve as economies recover.

• Demand is expected to be unpredictable.

• Demand is expected to remain stable.