07 Aug 2024
RIYADH: Saudi oil giant Aramco reported a net profit of $29.1 billion for the second quarter of 2024, reflecting a 6.59 percent quarter-on-quarter increase, despite challenging market conditions.
For the first half of the year, the company’s net income reached $56.3 billion. Operating cash flow amounted to $64.7 billion in the six months to the end of June, with $31.1 billion of that coming in the second quarter of 2024.
During a press conference following the results, Amin Nasser, Aramco’s president and CEO, said: “We remain positive about the outlook for global oil demand. Despite concerns about an economic downturn, global oil demand has been resilient, and in the first half of this year, demand saw record growth.”
The company reported SR828.74 billion in revenue for the first half of the year, registering a 0.9 percent increase from SR804.8 billion in the same period of 2023, driven by higher crude oil and refined product prices, as well as higher volumes of refined and chemical products sold.
He added: “As you have seen from our results today (Aug. 6), Aramco has once again delivered market-leading performance with strong earnings and cash flow in the first half of the year. On the financial side, we continue to maintain one of the most robust balance sheets in our industry.”
Aramco has declared a base dividend of $20.3 billion for the second quarter and a performance-linked dividend of $10.8 billion, which will be paid in the next three months.
The company expects to declare total dividends of $124.2 billion for 2024, highlighting its strong financial position.
In June, as part of the secondary public offering, Aramco acquired 137.6 million ordinary shares from the government for a cash payment of $1 billion.
The company’s secondary public offering and $6 billion bond issuance attracted significant investor interest. The firm also advanced its gas expansion with over $25 billion in new contracts, aiming for a 60 percent increase in sales gas production by 2030.
“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 added.
In response to Arab News’ question about refined and chemical products, Nasser said that Aramco is set to witness much more robust growth.