Day: November 20, 2020

Survival Of The Fittest

Despite boasting the lowest lifting costs in the world at $2.80, even Saudi Arabia is struggling in this low price environment. In fact, Saudi Aramco was forced to raise $8 billion from the sale of U.S. dollar-denominated bonds to meet a dividend pledge to their shareholders. Earlier this month, the company posted a 45% fall in net income for the third quarter, generating free cash flow of only $12.4 billion, compared with the roughly $18.75 billion it requires each three months to meet its dividend pledge.