Saudi Aramco Reports $27.3 Billion Net Income in Q1 2024
The energy giant, Saudi Aramco, announced a net income of $27.3 billion for the first quarter of 2024, showcasing its dominance in the global energy market. This figure marks a slight decrease from $31.9 billion recorded in the same period last year.
Strong Cash Flow and Dividend Declarations
The company also boasted a robust cash flow from operating activities, reaching $33.6 billion, with free cash flow amounting to $22.8 billion. Aramco’s gearing ratio improved to -3.8% as of March 31, 2024, compared to -6.3% at the end of 2023.
Moreover, Aramco declared a base dividend of $20.3 billion for the first quarter, along with a performance-linked dividend distribution of $10.8 billion set to be paid in the second quarter. The company anticipates total dividends of $124.3 billion in 2024, comprising a base dividend of $81.2 billion and a performance-linked dividend of $43.1 billion.
Key Developments and Acquisitions
During the quarter, Aramco awarded $7.7 billion in contracts for the expansion of its Fadhili Gas Plant, aiming to increase processing capacity by 1.5 billion standard cubic feet per day. The company also added 15 trillion standard cubic feet to proven gas reserves and two billion stock tank barrels at the Jafurah unconventional field.
Additionally, Aramco completed the acquisition of Chilean retailer Esmax, securing a 100% equity stake to support its downstream expansion. The company also revealed plans to double its venture capital funding to $7.5 billion, enabling investments in disruptive technologies across various sectors.
CEO Amin Nasser’s Outlook
CEO Amin Nasser commended Aramco’s performance, highlighting its resilience and strength in the face of challenges. He emphasized the company’s progress in expanding its gas business and downstream value chain while delivering value to shareholders consistently.
Nasser expressed confidence in Aramco’s portfolio and its role in the energy transition, aiming to address climate challenges with affordable and reliable energy solutions. The company remains committed to providing flexible energy supplies to global economies and industries. — SG
