Saudi Aramco, the world’s largest oil company, reported a 3.4% decrease in net income for the second quarter of 2024, with profits reaching $29.03 billion. This decline was primarily attributed to lower crude oil volumes sold and weaker refining margins. Despite the decrease, Aramco’s profits exceeded analysts’ expectations of $27.7 billion.The company declared dividends of $31.1 billion for the quarter, including a $20.3 billion base dividend and a $10.8 billion performance-linked payout. Aramco expects to pay total dividends of $124.2 billion in 2024, in line with previous guidance. These payouts are crucial for the Saudi government, which holds 81.5% of Aramco and relies heavily on the company’s dividends.Aramco’s production has remained low, averaging 8.8 million barrels per day in June, well below its capacity of 12 million barrels per day, as the company adheres to OPEC+ production cuts. This reduced output is expected to continue until at least October, after which an OPEC+ agreement will allow for gradual monthly increases.Despite the challenges, Aramco’s CEO Amin Nasser emphasized the company’s strong performance, stating, ‘We have delivered market-leading performance once again, with strong earnings and cash flows in the first half of the year’. The company’s profits play a crucial role in financing Saudi Arabia’s ambitious projects, including the futuristic mega-city NEOM.While Aramco’s performance remains strong, the global oil market faces uncertainties due to economic concerns, with Brent crude trading around $77 a barrel. Activists have criticized Aramco’s profits, citing concerns about the burning of fossil fuels and its impact on climate change.
Key points
- Saudi Aramco’s Q2 2024 profits decreased by 3.
- The company declared $31.
- Aramco’s production remains constrained due to OPEC+ cuts, averaging 8.
- Despite challenges, CEO Amin Nasser emphasized the company’s strong performance and market-leading position.
4% to $29.
03 billion, but still exceeded analysts’ expectations.
1 billion in dividends for Q2 and expects to pay $124.
2 billion in total dividends for 2024.
8 million barrels per day in June.
