Saudi Aramco board approves capital increase

Oil company to grant bonus shares through the capitalisation of $4bn

Aramco's capital increase, approved by the company's board, will feature ­the number of shares rising to 220 billion from 200 billion. Reuters

Saudi Aramco, the world's largest oil-producing company, said on Sunday its shareholders have approved a board recommendation to increase capital.

The boost will be by way of granting bonus shares through the capitalisation of 15 billion Saudi riyals ($4bn) from the company’s retained profits, Aramco said in a filing to the Tadawul stock exchange.

The shareholders will be given one share for every 10 they own.

The company's share capital will increase 25 per cent to 75bn riyals, it said. ­The number of shares will rise from 200 billion to 220 billion, it said.

"By increasing its capital, the company aims to maximise total returns for its shareholders through the distribution of sustainable and progressive dividends, in line with future prospects, underlying growth in free cash flow, and long-term value creation through investments in available opportunities," Saudi Aramco said.

The company on Sunday also reported a surge in first-quarter net profit of about 82 per cent to about $39.47bn from the year-earlier period on higher oil prices, volume sold and improved downstream margins.