Saudi Aramco (TADAWUL: 2222) reported a 19% drop in Q1 earnings, with net income of $31.9 billion, up from $39.5 billion a year earlier, due to lower oil prices.

However, the company's net profit increased by 3.75% MoM. Lower taxes and higher financial and other revenues made up for the weaker operating results. Shares of Saudi Aramco advanced from SAR 32.55 to SAR 33.65 following the publication.

Aramco's Q1 dividend rose to $19.5 billion in Q4 and will be paid in Q2 2023. The company reported quarterly cash flow from operations of $39.6 billion and free cash flow of $30.9 billion, both up slightly from a year earlier.

Saudi Aramco, the world's largest oil exporter, also said it would pay a performance dividend in addition to the $19.5 billion, targeting 50% to 70% of free cash flow. The company said the dividend will be paid quarterly, at the discretion of the company's BoD based on the company's performance.

It is essential, therefore, for Saudi Arabia to further tighten oil supply via OPEC+ channels, in an attempt to recover lost oil revenues by pushing up oil prices. Currently, Brent Crude oil front month contract is trading at below $75/bbl dropping 0.65% today.