Aramco to Pay Over $124 Billion as Total Dividends in 2024

State-owned petroleum and natural gas company Saudi Aramco on Tuesday said that it will return more than $124 billion to shareholders in this financial year following a market-leading performance during the first six months of 2024.

Releasing the financial results for Q2 and H1 of 2024, Aramco declared a $20.3 billion “base dividend” for the second quarter of this year, as well as a performance-linked dividend of $10.8 billion that will be paid in Q3 of 2024.

The world’s largest oil company also highlighted that it now expects to declare total dividends of $124.2 billion in 2024.

The interim free cash flow came to $41.7 billion in H1 of 2024, with $19 billion coming in Q2, down from $22.7 billion in Q1 and $23.2 billion at the same time a year earlier. The income for the first half of this year stood at $56.3 billion, with $27.2 billion coming in Q1 and a further $29.1 billion in the second.

Cash flow from operating activities was $31.1 billion in Q2 and $64.7 billion in H1 of 2024 and free cash flow was $19 billion and $41.7 billion respectively for the same period.

The secondary public offering of Aramco shares and $6 billion bond offering received strong demand from investors worldwide, Aramco said.

Company advanced strategic gas expansion with the announcement of contract awards worth more than $25 billion, as it targets sales gas production growth of more than 60% by 2030, compared to 2021 levels and it has also agreed to acquire 10% equity interest in HORSE Powertrain Limited, the global powertrain solutions company established by Renault Group and Geely.

International retail expansion progresses with successful acquisition of 40% equity stake in Gas & Oil Pakistan Ltd and signed another agreement with Pasqal to install first quantum computer in Saudi Arabia.

Exciting Times

Commenting on the results. Aramco’s Chief executive Amin Nasser said that these were exciting times for the company as they continued to seek new opportunities to enhance their portfolio and capabilities to enable a secure and more sustainable energy future.

The company has delivered market-leading performance once again, with strong earnings and cash flows in the first half of the year. Leveraging these strong earnings, it continued to deliver a base dividend that is sustainable and progressive, and a performance-linked dividend that shares the upside with shareholders, he said.

“We have also continued to create and deliver both value and growth, as demonstrated by the positive investor response to the Government’s secondary public offering of Aramco shares and our recent $6 billion bond issuance. Our drive to create value is supported by our distinctive long-term competitive advantages, our exceptional financial resilience through cycles, and our strong balance sheet,” he said.

“Building on these strengths, we also made significant progress in key strategic areas during the second quarter — from advancing our gas program and expanding our new energies portfolio, to partnering with leading car manufacturers on lower-emission vehicle technologies and growing our global retail network,” he added.