RIYADH: Saudi oil major Aramco posted a net profit of $29.1 billion in the second quarter of 2024, reflecting a 6.59 percent quarterly growth despite challenging market conditions.
In the first half of the year, the company said its net income reached $56.3 billion.
Operating cash flow was $64.7 billion in the six months to the end of June, coming in at $31.1 billion in the second quarter of the year.
Amin Nasser, Chairman and CEO of Aramco, said: “We once again delivered a market-leading performance in the first half of the year with strong earnings and cash flow. Leveraging these strong earnings, we continue to deliver a base dividend that is sustainable and progressive, and a performance-linked dividend that shares upside with our shareholders.
Aramco announced a base dividend of $20.3 billion and a performance-linked dividend of $10.8 billion for the second quarter, which will be paid over the next three months.
The company expects to declare a total dividend of $124.2 billion for 2024, highlighting its strong financial position.
“We also continue to create and deliver both value and growth, as demonstrated by the positive investor response to the government's second public offering of Aramco shares and our recent $6 billion bond issuance. Our drive to create value is driven by our distinctive long-term competitive advantages, cycles This is supported by our exceptional financial flexibility and our strong balance sheet,” he added.
The company reported revenue of $220.73 billion in the first half of the year, an increase of 0.9 percent compared to SR804.8 billion in the same period of 2023, due to higher crude oil and refined product prices, as well as higher refined and higher volumes. Sales of chemical products.
This was partially offset by a decrease in crude oil volumes sold during the period, according to a statement on Tadawul.
The state-owned oil company reported total revenue of $113.52 billion in the second quarter of the year, compared with $107.35 billion in the same period in 2023.
For the three months through the end of June, free cash flow fell compared to the same quarter in 2023. The decline was primarily due to lower earnings and a decrease in operating cash flow due to adverse changes in working capital.
However, this was partially offset by a reduction in cash payments for income, zakat, and other taxes.
In June 2024, as part of the second public offering, Aramco acquired 137.6 million ordinary shares from the government for a cash payment of $1 billion.
Nasser also noted that building on these strengths, significant progress was made in key strategic areas in the second quarter.
Aramco's secondary public offering and issuance of $6 billion in bonds attracted huge investor interest. The company has also stepped up its gas expansion with more than $25 billion in new contracts, targeting a 60 percent increase in sales gas production by 2030.
The state oil firm acquired 10 percent stake in HORSE Powertrain Limited and 40 percent interest in Gas and Oil Pakistan Limited. It partnered with Pasqal to establish Saudi Arabia's first quantum computer.
“These are exciting times for Aramco as we continue to seek new opportunities to grow our portfolio and our capabilities to enable a secure and sustainable energy future,” he added.
