Saudi Aramco, the world’s leading energy company, reported a net income of $27.3 billion for the first quarter of 2024, a decrease from $31.9 billion in the same period last year. Despite this, the company experienced robust cash flow from operating activities totaling $33.6 billion and free cash flow amounting to $22.8 billion. Aramco’s gearing ratio stood at -3.8% as of March 31, 2024, compared to -6.3% at the end of 2023. The company declared a base dividend of $20.3 billion for the first quarter, along with a performance-linked dividend distribution of $10.8 billion, to be paid in the second quarter. It is expected that total dividends of $124.3 billion will be declared in 2024, including a base dividend of $81.2 billion and a performance-linked dividend of $43.1 billion.
In the first quarter of 2024, Saudi Aramco made significant developments such as awarding $7.7 billion in engineering, procurement, and construction contracts for the expansion of its Fadhili Gas Plant, which is expected to add 1.5 billion standard cubic feet per day (bscfd) of processing capacity. Additionally, the company announced the addition of 15 trillion standard cubic feet (tscf) to proven gas reserves and two billion stock tank barrels at the Jafurah unconventional field. Aramco also completed its acquisition of a 100% equity stake in Chilean retailer Esmax to support its downstream expansion. Moreover, the company announced that its overall venture capital funding will more than double to $7.5 billion, allowing it to finance disruptive new technologies in various sectors, including digital and sustainability.
Aramco President and CEO Amin Nasser emphasized the company’s resilience and strength, positioning it as a leading supplier of energy globally. He highlighted the progress made in expanding the gas business and growing the downstream value chain in the first quarter. Nasser expressed confidence in Aramco’s evolving portfolio and its ability to contribute to an energy transition that addresses climate challenges while ensuring affordable, reliable, and flexible energy supplies. He reiterated the company’s commitment to consistently delivering value for shareholders and advancing its long-term strategy.
The first-quarter results of Saudi Aramco reflect its strategic focus on expanding its gas business and growing its downstream value chain while delivering value to its stakeholders. The company’s commitment to investing in disruptive new technologies underscores its dedication to innovation and sustainability. With the addition of new projects and acquisitions in the first quarter of 2024, Aramco is poised to continue leading in the energy sector and driving growth in its business segments. The company’s strong financial performance and dividend declarations demonstrate its ability to navigate challenging market conditions and deliver returns to its shareholders.
In conclusion, Saudi Aramco’s first-quarter results for 2024 demonstrate its resilience and strategic focus on expanding its business segments, especially in gas and downstream operations. The company’s strong financial performance, robust cash flow, and dividend declarations underscore its commitment to delivering value to its stakeholders. With a clear vision for the future and the ability to adapt to evolving market conditions, Aramco remains a key player in the global energy landscape. Its investments in new technologies and acquisitions position it for continued growth and success in the years ahead.