Saudi Arabia’s state oil giant, Aramco, has announced a decline in its net profit for 2024, reporting $106.2 billion, down from $121.3 billion in 2023, UNB reported, citing other agencies.
The company also revealed a significant reduction in its dividend payouts for 2025, expecting total distributions of $85.4 billion, compared to $124.2 billion in 2024.
Aramco disclosed that its base dividend for the fourth quarter of 2024 would rise to $21.1 billion, while its performance-linked payout would drop sharply to just $200 million. This marks a steep decline from the previous quarter, when the company distributed a base dividend of $20.3 billion alongside a performance-linked payout of $10.8 billion.
Aramco’s declining profit comes amid falling global oil prices and slowing demand. In 2024, the average price of Brent crude oil stood at $80 per barrel, down $2 from the 2023 average, according to the U.S. Energy Information Administration.
Moreover, an increase in global crude production put further downward pressure on prices, affecting Aramco’s earnings.
The company also reported a decline in total revenue, which fell to $436.6 billion in 2024 from $440.8 billion in 2023. This financial performance underscores the challenges faced by the energy sector, as fluctuating oil prices and shifting market dynamics continue to shape the industry’s outlook.
Despite the decline, Aramco remains one of the world’s most profitable companies and a key driver of Saudi Arabia’s economy. It continues to invest in expansion projects and energy transition initiatives, positioning itself for long-term stability in an evolving energy landscape.
Industry analysts will be closely watching Aramco’s strategic decisions in the coming months, particularly regarding dividends and capital expenditure, as it navigates a period of global economic uncertainty.
Bd-pratidin English/ Jisan
