RIYADH: Saudi energy giant Aramco reported a net profit of SR398.42 billion ($106.2 billion) in 2024, despite challenging market conditions, including lower prices for crude oil, refined products, and chemicals.
In a press statement, the company revealed that its net profit declined by 12.39 percent from $121.3 billion in the previous year.
Despite the earnings decline, the company raised its quarterly base dividend by 4.2 percent to $21.1 billion, underscoring its commitment to shareholder returns.
This comes as Saudi Arabia, in line with OPEC+ decisions, reduced its oil output by 500,000 barrels per day in April 2023. The cut, which remained in effect throughout 2024, was also a key factor in Aramco’s profit decline.
“Our strong net income and increased base dividend illustrate Aramco’s exceptional resilience and ability to leverage its unique scale, low cost, and high levels of reliability to deliver industry-leading performance for our shareholders and customers,” said Amin H Nasser, CEO of Aramco.
According to the statement, Aramco’s total revenue stood at SR1.63 trillion in 2024, representing a marginal decline of 0.97 percent compared to 2023.
The energy giant’s operational profit stood at SR774.63 billion in 2024, down 10.79 percent from the previous year.
Aramco’s fourth-quarter profit aligned with analyst expectations despite $1.7 billion in non-cash charges. Total shareholders’ equity, after minority interest, stood at SR1.45 trillion as of Dec. 31, 2024, compared to SR1.53 trillion a year earlier.
The company expects total dividends of $85.4 billion to be declared in 2025.
Additionally, Aramco’s board has approved a $200 million performance-linked dividend, which will be distributed in the first quarter of this year.
The company invested $53.3 billion in capital projects in 2024, with $50.4 billion directed toward organic capital expenditures. It provided a 2025 capital investment guidance of $52 billion to $58 billion, excluding approximately $4 billion in project financing.
As Aramco continues to advance its long-term growth strategy, it expects its upstream gas business to generate an additional $9 billion to $10 billion in operating cash flow by 2030, while its downstream segment could contribute an extra $8 billion to $10 billion.
Looking ahead, Nasser said global oil demand is expected to maintain momentum in 2025.
“Global oil demand reached new highs in 2024, and we expect further growth in 2025,” said Nasser.
He emphasized that “dependable and more sustainable energy” is key to global economic growth, adding that Aramco is making progress on projects to maintain its maximum sustainable crude oil capacity, expand gas capabilities, and further integrate its upstream and downstream businesses “to capture additional value.” He also noted the company’s efforts to help mitigate greenhouse gas emissions.
Nasser added: “We are also adopting and deploying AI technologies and solutions at scale across our operations, unlocking greater efficiencies and value creation throughout our business. Capital discipline is at the core of Aramco’s strategy, enabling us to deliver growth and capture value across conventional and new energy solutions.”
