Saudi state oil giant Aramco reported its second quarter and half-year 2024 results, stating that it achieved profits of $29.1 billion in Q2 and $56.3 billion in H1. The company’s Q2 profits dipped slightly over 3 percent compared to the same period last year as oil production remained low. Quarter-on-quarter, Saudi Aramco saw a 6.59 percent rise in net profits.
“We have delivered market-leading performance once again, with strong earnings and cash flows in the first half of the year,” stated Aramco president and CEO Amin H. Nasser.
Aramco also posted a free cash flow of $19 billion in Q2 compared to $23.2 billion a year earlier and $41.7 billion in H1. Meanwhile, cash flow from operating activities reached $31.1 billion in Q2 and $64.7 billion in H1.
Total dividends to reach $124.2 billion
The oil giant reaffirmed its Q2 base dividend of $20.3 billion and declared a performance-linked dividend of $10.8 billion that it will pay in Q3. The world’s largest oil company expects to declare total dividends of $124.2 billion in 2024.
“Leveraging these strong earnings, we continued to deliver a base dividend that is sustainable and progressive, and a performance-linked dividend that shares the upside with our shareholders,” Nasser added.
Following the report’s release, Aramco’s stock was trading 2.24 percent higher at SAR27.40 as of 9:39 GMT.
Revenues rise
The oil company’s revenues reached $220.73 billion in H1, up 0.9 percent from $214.38 billion during the first half of 2023 amid the rise in prices of crude oil. In Q2, revenues reached $113.52 billion, another increase from $107.35 billion in Q2 of 2023.
In addition, the company’s secondary public offering of shares and the $6 billion bond offering received strong demand from investors worldwide. “We have also continued to create and deliver both value and growth, as demonstrated by the positive investor response to the government’s secondary public offering of Aramco shares and our recent $6 billion bond issuance,” added Nasser.
Read: ADNOC, Japan’s Osaka Gas sign long-term LNG supply agreement for Ruwais LNG project
Portfolio expansion
“Building on these strengths, we also made significant progress in key strategic areas during the second quarter from advancing our gas program and expanding our new energies portfolio to partnering with leading car manufacturers on lower-emission vehicle technologies and growing our global retail network,” Aramco’s CEO added.
The company advanced its strategic gas expansion with the announcement of contract awards worth more than $25 billion, as it targets sales gas production growth of more than 60 percent by 2030, compared to 2021 levels.
This year, Aramco also agreed to acquire a 10 percent equity interest in HORSE Powertrain Limited, the global powertrain solutions company established by Renault Group and Geely. Moreover, it inked an agreement with Pasqal to instal the first quantum computer in Saudi Arabia. Furthermore, Aramco expanded its international retail with the successful acquisition of a 40 percent equity stake in Gas & Oil Pakistan Ltd.
“These are exciting times for Aramco as we continue to seek new opportunities to enhance our portfolio and our capabilities to enable a secure and more sustainable energy future,” concluded Nasser.
For more news on energy, click here.
