The Saudi energy giant Aramco reported an annual profit of $106.2 billion in 2024, with a 4.2% YoY increase in base dividend for the fourth quarter of the year.
In a press release on Tuesday, Aramco announced the full-year results for 2024, pointing to a 12% decrease in its net profit from $121.3 billion in 2023. The company also noted that cash flow from operating activities recorded $135.7 billion in 2024, with the free cash flow reaching $85.3 billion.
Aramco’s Dividends
Saudi Aramco announced a base dividend of $21.1 billion for Q4 2024, to be paid in Q1 2025, underscoring the company’s commitment to delivering a sustainable and progressive dividend. Furthermore, Saudi Aramco declared a performance-linked dividend of $0.2 billion, to be paid in Q1 2025, according to previously announced mechanism.
The Saudi oil giant also expects total dividends of $85.4 billion in 2025. On this occasion, Aramco President and CEO, Amin Nasser, said: “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.”
Capital Investment
According to Aramco’s press release, the company reported capital investment of $53.3 billion in 2024, including $50.4 billion organic expenditures. It provided a 2025 capital investment guidance of $52.0 billion to $58.0 billion, excluding around $4.0 billion of project financing.
Growth Strategy
The press release noted that Aramco is making progress in advancing its growth strategy across Upstream and Downstream businesses. The company expects an additional $9 billion to $10 billion in operating cash flow by 2030 from Aramco’s Upstream gas business, and an additional $8 billion to $10 billion from growth in its Downstream business over the same period.
Demand Growth
Saudi Aramco expects a growth in global oil demand in 2025. In the light of this, Nasser said: “Global oil demand reached new highs in 2024, and we expect further growth in 2025.”
He added that “with dependable and more sustainable energy key to global economic growth, we continue to make progress on projects to maintain our maximum sustainable crude oil capacity, expand our gas capabilities, achieve further integration of our Upstream and Downstream businesses to capture additional value, and help mitigate greenhouse gas emissions.”
Moreover, Nasser pointed to Aramco’s adoption of cutting-edge technologies and solutions to drive growth. “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,” he said.
