Business

Lower Revenues Impact Aramco Profits in 2024

Saudi Arabia’s major oil company on Tuesday said that its profits declined by about 12.4% y-o-y in in 2024, affected by lower revenues.

Announcing its financial results this morning, Aramco said that its net income stood at $106.2 billion compared with $121.3 billion in the previous year and the cash flow from operating activities was $135.7 billion in 2024 compared with $143.4 billion in the previous year.

Aramco said that the Q4 of 2024 net income in line with analyst consensus, despite certain other non-cash charges of $1.7 billion and the Board has declared base dividend of $21.1 billion for Q4, a 4.2% y-o-y increase, to be paid by end of this month, reflecting the company’s focus on delivering a sustainable and progressive dividend.

The company has declared $200 million as performance-linked dividend of, which will be this month in line with previously announced mechanism. Overall, the company expects total dividends of $85.4 billion to be declared in 2025.

The progress is on track to deliver growth strategy across upstream and downstream, with potential additional operating cash flows of $9 billion to $10 billion from growth in Aramco’s upstream gas business, and $8 billion to $10 billion from growth in its downstream business by 2030.

Exceptional Resilience

Aramco President & CEO Amin H. Nasser said that their strong net income and increased base dividend illustrated 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.

“Global oil demand reached new highs in 2024, and we expect further growth in 2025. With dependable and more sustainable energy key to global economic growth, we continue to make progress on projects to maintain our maximum sustainable crude oil capacity, expand our gas capabilities, achieve further integration of our Upstream and Downstream businesses to capture additional value, and help mitigate gas emissions,” he said.

“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,” he added.

Global Business Magazine

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