Aramco expects total dividends of more than $124bn this year, despite a fall in net income in Q1.
The Saudi Arabian Oil Company (Aramco) has published its financial results for the first quarter of 2024, highlighting progress made in its growth strategy.
Aramco’s report shows a net income of SR102.3bn ($27.3bn) in the first quarter of 2024, compared to SR119.5bn ($31.9bn) in the same period of 2023.
Aramco Q1 results
Cash flow from operating activities also decreased slightly, coming in at SR126bn ($33.6bn) compared to SR148.6bn ($39.6bn) during the same period last year.
The free cash flow dipped to SR85.3bn ($22.7bn) from SR115.9bn ($30.9bn) in Q1 2023.
The report also stated that the gearing ratio improved to -3.8 per cent by March 31, 2024, compared to -6.3 per cent at the end of 2023.
The company expects total dividends of SR466.1bn ($124.3bn) to be declared in 2024, including base dividends of SR304.4bn ($81.2bn) and performance-linked dividends of SR161.7bn ($43.1bn).
Aramco also stated that SR28.9bn ($7.7bn) of engineering, procurement, and construction contracts were awarded for Fadhili Gas Plant expansion, which is expected to add 1.5bn standard cubic feet per day (bscfd) in processing capacity.
Moreover, Aramco announced the addition of 15tn standard cubic feet (tscf) to proven gas reserves and two billion stock tank barrels of condensate at the Jafurah unconventional field.
Aramco has completed its acquisition of a 100 per cent equity stake in Chilean retailer Esmax, “supporting the company’s downstream expansion”.
It said that this would increase the overall venture capital funding to more than double, to SR28.1bn ($7.5bn), expanding the company’s ability to finance disruptive new technologies in a variety of sectors, including the digital and sustainability fields.
Aramco’s President and CEO Amin H. Nasser said that the performance in the first quarter demonstrates the company’s resilience.
He emphasised Aramco’s position as a leading global energy supplier, catering to economies, industries, and people worldwide.
Nasser said: “We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders.
“Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognizes the need for affordable, reliable, and flexible energy supplies.”
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