Aramco's profit down 3.4% in second quarter of 2024

Oil giant Saudi Aramco yesterday reported a 3.4 per cent fall in second-quarter profits on lower crude volumes and softer refining margins, yet kept its generous dividend policy unchanged, with $31.1 billion in payouts for the quarter, Reuters reported.

Aramco posted second-quarter net income of 109.01 billion riyals ($29.03 billion) in the three months to 30 June, beating a company-provided median estimate from 15 analysts of $27.7 billion.

The company declared dividends of $31.1 billion, including $10.8 billion in performance-linked payouts. Aramco introduced the performance-linked dividends last year, on top of a base dividend that is paid regardless of results, an uncommon practice among listed companies.

Aramco, the world’s most profitable oil company and top oil exporter, has long been a vital source of income to Saudi Arabia, which is spending vast sums under Crown Prince Mohammed Bin Salman’s Vision 2030 plan to end what he once called the kingdom’s “oil addiction”.

Aramco said on Tuesday it expects $124.2 billion in total dividends in 2024, roughly in line with previous guidance of $124.3 billion.

In April 2023, Saudi Arabia announced a reduction in oil production by 500,000 barrels per day, as part of a joint move by the OPEC+ alliance to reduce supplies by more than one million barrels per day.

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