Saudi Aramco has authorized a $3 billion share buyback program and increased its dividend payout, according to a new filing on Saudi market exchange (Tadawul). 

The company is currently rerouting exports as the Strait of Hormuz remains largely at a standstill. While oil prices spiked, potentially cushioning the impact of reduced production, crude reached nearly $120 before declining to $112 on Monday and further easing following statements from U.S. President Donald Trump regarding a potential end to the hostilities.

The enhanced dividend will primarily benefit the Saudi government and the kingdom’s sovereign wealth fund, which collectively own 97.62 percent of Aramco. The Saudi government relies heavily on these substantial payouts to fund its extensive economic diversification initiatives.

Over the past year, Saudi Aramco shares have seen a 1.22 percent change, with a 52-week trading range between 23.04 and 27.40. The average daily trading volume stands at 8,599,348 shares. Today, the stock fluctuated between 26.50 and 26.88, after opening at 26.70.

Source: Economymiddleeast