Saudi Aramco has declared a substantial dividend of $31.1 billion for the second quarter of 2024, marking its ongoing commitment to shareholder returns. This dividend, set to be paid in the third quarter, comprises a base dividend of $20.3 billion and an additional performance-linked dividend of $10.8 billion.
Despite this impressive payout, the oil giant reported a 3.36% decline in net profits for the April-June period, totaling $29.07 billion compared to $30.08 billion for the same quarter in the previous year. This decrease in profits comes as Saudi Aramco shifts focus towards its gas programme and expands its new energy portfolio.
Amin H. Nasser, President and CEO of Saudi Aramco, highlighted the company’s robust performance and its strategic advancements. “Our strong earnings and cash flows have enabled us to sustain a progressive base dividend and share the upside with our shareholders through a performance-linked dividend,” Nasser said.
The company’s revenue for the second quarter rose by 5.7% to $113.523 billion, up from $107.350 billion in the same period last year. However, expenses surged by 12.04% to $70.443 billion from $62.871 billion in the previous year.
Aramco’s performance surpassed the net profit estimates set by analysts, even amidst rising geopolitical tensions and a global market selloff spurred by recession fears.
As the leading member of the Organization of Petroleum Exporting Countries (OPEC), Saudi Aramco continues to manage significant crude output levels, while Brent crude prices remain pressured by ongoing Middle East conflicts. The company maintains its position as the fifth largest globally by market capitalization, valued at $1.754 trillion as of August 6.
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