Saudi Aramco announces $31.1 billion dividend for Q2, to boost focus on gas programme; net profit slides 3.36%

Saudi Aramco on Tuesday declared a dividend of $31.1 billion in its second quarter results for calendar year 2024, payable in the third quarter. The sum includes the base dividend of $20.3 billion in Q2 of 2024 and a performance-linked dividend of $10.8 billion, according to the company's investor presentation.

“We have delivered market-leading performance once again, with strong earnings and cash flows in the first half of the year. Leveraging these strong earnings, we continued to deliver a base dividend that is sustainable and progressive and a performance-linked dividend that shares the upside with our shareholders,” Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco, said in a statement.

The oil major announced a 3.36 per cent fall in net profits to $29.07 billion in the April to June quarter results of the calendar year 2024, compared to $30.08 billion in the same quarter the previous year, as per a regulatory filing by the company. The company has increased its focus on the gas programme and on the expansion of its new energy portfolio business.

“Building on these strengths, we also made significant progress in key strategic areas during the second quarter, from advancing our gas programme and expanding our new energies portfolio to partnering with leading car manufacturers on lower-emission vehicle technologies and growing our global retail network,” Nasser stated.

The petroleum refining giant recorded a 5.7 per cent rise in company revenues at $113.523 billion in the second quarter of the calendar year, compared to $107.350 billion in the same period the previous year.

The company's expenses for the quarter surged 12.04 per cent to $70.443 billion, compared to $62.871 billion in the same quarter the previous calendar year.

The company exceeded the net profit estimates for the quarter, according to the consensus median estimates of 15 analysts, as per a Reuters report.

Saudi Aramco is the de facto leader of the Organization of Petroleum Exporting Countries (OPEC), which is responsible for producing 9 million barrels of crude per day at a time when Brent crude is trading at a record low, supported by the rising tensions in the Middle East due to Israel-Iran tensions.

The global markets experienced a selloff due to the rising fear of a potential US economic recession driven by the release of the US jobs data last week. Stock and commodities fell, but oil was still supported, fuelled by geopolitical turmoil.

Saudi Aramco is the fifth largest company in the world in terms of the oil major's market capitalisation, which stands at $1.754 trillion, as of August 6, according to data collected from CompaniesMarketCap.