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 represents a 12.7 percent increase over the past three years, reinforcing Aramco’s focus on sustainable and progressive payouts.
Additionally, the company has declared a performance-linked dividend of $0.2 billion to be paid in the first quarter of 2025.
This comes as Saudi Arabia, in line with OPEC+ decision, 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.
Speaking on a press conference call following the financial results, Nasser emphasized that adjustments to performance-linked dividends should not be seen as unexpected cuts but rather as part of the company’s mechanism to ensure shareholder value.
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.
“Aramco is targeting more than a 60 percent increase in sales gas production capacity by 2030, with the Jafurah unconventional field playing a key role, as initial startup is expected later this year,” Nasser said during the press conference.
He continued: “The ongoing development of the Master Gas System will further enhance domestic gas supply access.”
He also mentioned during a webcast after the financial results that this translates to approximately 1 million additional barrels of oil per day for export, along with another 1 million barrels per day of associated liquids.
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 further noted that global demand growth is projected to reach approximately 1.3 million barrels per day, with Aramco well-positioned to capitalize on market dynamics while maintaining strong reliability, as evidenced by its 99.7 percent delivery reliability in 2024.
“The market is at a record level. It is healthy. We have seen 104.8 million barrels in 2024. Our expectation is 106.1 million in 2025, a growth of 1.3 million barrels this year. That expected decision by OPEC to increase production gradually definitely will be positively impacting the different companies as it is rolled out over the next 18 months, but that is taken into our consideration,” Nasser said.
Nasser continued: “But as you know, we always receive our target on a monthly basis, and we act upon that target and quota that we receive with regard to our production, and based on that, the results will be seen at the end of the year when we look at our total production based on whatever decisions from the government with regard to production content.”
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.”
“Our downstream strategy of generating value through greater integration remains consistent. In 2024, over 50 percent of our crude oil production was directed to our own downstream operations,” Nasser stated during the webcast.
He further added: “We are also continuing to expand our liquid-to-chemical business with low equity, making strategic investments in key Asian markets for crude placement.”
In line with this strategy, Nasser said that Aramco has increased its ownership in MidOcean to 49 percent, enabling the company to fund an additional stake in Port Arthur LNG and secure an estimated 7.5 million tonnes per annum of LNG volumes.
He also noted the company’s efforts to help mitigate greenhouse gas emissions.
“We are leveraging the Kingdom’s advantage in solar and wind resources and geology to capture any and all value additive opportunities. Renewables are a key component of our decarbonization levers with high growth prospects in the Kingdom,” Nasser said.
“One diversification example that we are excited about is our exploration of opportunities in energy transition minerals, such as lithium in Saudi Arabia, which aligns with our growth strategy and aim to support our move into alternative energy sources,” Nasser said.
He 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.”
