Members of media chat before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.
Hamad I Mohammed | Reuters
Saudi state oil producer Aramco reported on Tuesday a decline in net profit to $106.2 billion in 2024, down from $121.3 billion in 2023.
The company said it expects total dividends for 2025 of $85.4 billion — a significant fall from 2024’s total of $124.2 billion.
This comes as it cut its total payout for the fourth quarter. The oil giant said its base dividend for the final three months of the year would be increased to $21.1 billion, but its performance-linked payout would be just $200 million. This compares to a third-quarter base dividend of $20.3 billion and a performance-linked dividend of $10.8 billion.
Lower oil prices hit the company’s net profit last year as crude production around the world increased and demand slowed. Amarco’s realized oil price — the final price the company receives for selling its crude after accounting for transport costs and other factors — dropped to $80.2 per barrel in 2024 from $83.6 the year prior.
Aramco’s revenue fell to $436.6 billion in 2024, compared to $440.8 billion the year before.
Full-year total borrowings at the company were up, rising to $319.3 billion in 2024 from $290.1 billion during the previous year. The company’s net debt, however, decreased from $102.8 billion in 2023 to $78 billion in 2024.
Aramco’s dividend, the highest in the world, has played a key role in beefing up Saudi Arabia’s state coffers. The announced cut will hit the kingdom’s budget deficit, which has been widening amid weaker oil prices and higher state spending on the megaprojects planned for Vision 2030, Saudi Crown Prince Mohammed Bin Salman’s multitrillion-dollar economic transformation campaign.
