Despite a 12% drop in its full-year net profit for 2024, Saudi Aramco is moving forward with a $21 billion dividend for the fourth quarter of 2024. This significant payout marks a 4% year-on-year increase, amounting to a total SAR80 billion ($21.4 billion).
The payment will be made in the first quarter of 2025, reflecting the company’s ongoing commitment to rewarding shareholders.
In addition to the base dividend, the company also announced a performance-linked dividend of $0.2 billion, scheduled for the same quarter.
Saudi Aramco’s full-year net profit for 2024 fell to $106 billion, down 12% from the previous year. Despite the profit decline, the oil giant’s cash flow from operating activities totaled $136 billion, a 5% decrease from 2023's $143 billion.
This drop can be attributed to a combination of factors, including fluctuating oil prices. However, the company remains strong in its ability to provide consistent dividends.
In 2024, Aramco allocated $53 billion for capital investment, which included $50 billion in organic capex. Looking forward to 2025, the company plans to continue its investment strategy, with capital spending expected to range between $52 billion and $58 billion, excluding approximately $4 billion of project financing.
CEO Amin Nasser remains optimistic about the future, noting that global oil demand reached new highs in 2024 and is anticipated to continue growing in 2025. Aramco is also actively working on expanding its upstream and downstream businesses, focusing on maximizing crude oil capacity and boosting its gas capabilities.
By 2030, Aramco expects $9 billion-$10 billion in operating cash flow from the upstream gas business and $8 billion-$10 billion from the downstream sector.
Additionally, the company’s spare capacity could potentially generate another $12 billion in operating cash flow, assuming oil prices remain stable at 2024’s average level.
Despite challenges in 2024, Saudi Aramco’s unwavering focus on dividends and sustainable capital investment underscores its resilience and long-term strategy. The company continues to position itself as a leading force in the global energy market, ensuring future growth through significant investments and increased production capacity.
The most profitable year for Saudi Aramco was in 2022, when the company reported a net profit of $161.1 billion, marking its highest-ever annual profit. This surge was driven by rising oil prices, strong global demand, and higher production levels. It was also a significant milestone as it surpassed its 2021 profit of $110 billion, cementing Aramco's position as one of the most profitable companies in the world.
Saudi Aramco’s $21 billion dividend declaration for Q4 2024, alongside its substantial capital investment plans for 2025, highlights the company’s robust financial health and ongoing commitment to growth and shareholder value.
Despite a slight profit dip, Aramco remains confident in its ability to capture new opportunities in the global energy market, with upstream and downstream expansions set to drive future profits.
