Share

Saudi Aramco reports Q1 2024 net income of $27.2 billion

Cash flow from operating activities stands at $33.59 billion
Saudi Aramco reports Q1 2024 net income of $27.2 billion
Free cash flow reached $22.7 billion in Q1 2024.

The Saudi Arabian Oil Company (Aramco) recorded in the first quarter (Q1) of 2024 a net income of SAR102.3 billion ($27.2 billion), compared to SAR119.5 billion ($31.86 billion) in the same period of the previous year.

According to the report, the cash flow from operating activities slightly decreased to SAR126.0 billion ($33.59 billion) from SAR148.6 billion ($39.6 billion) in the corresponding period of last year.

Free cash flow also experienced a decline, reaching SAR85.3 billion ($22.7 billion) in Q1 2024, down from SAR115.9 billion ($30.9 billion) in Q1 2023.

The report indicated an improvement in the gearing ratio, which stood at -3.8 percent as of March 31, 2024, compared to -6.3 percent at the end of 2023.

Read more: Saudi Aramco expands Fadhili Gas Plant with $7.7 billion in EPC contracts

Aramco expects to declare total dividends of SAR466.1 billion in 2024, comprising SAR304.4 billion in base dividends and SAR161.7 billion in performance-linked dividends.

In addition, the press release disclosed that engineering, procurement, and construction contracts worth SAR28.9 billion were awarded for the expansion of the Fadhili Gas Plant. This expansion project aims to increase the processing capacity by 1.5 billion standard cubic feet per day (bscfd).

Furthermore, the announcement revealed that Aramco has added 15 trillion standard cubic feet (tscf) of proven gas reserves and two billion stock tank barrels of condensate at the Jafurah unconventional field.

Regarding acquisitions, Aramco completed the acquisition of a 100 percent equity stake in Chilean retailer Esmax, which is expected to support the company’s downstream expansion. This acquisition will significantly increase venture capital funding to SAR28.1 billion, more than double the previous amount. The increased funding will enhance Aramco’s ability to finance disruptive new technologies in various sectors, including digital and sustainability fields.

For more news on banking & finance, click here.

Related Topics:
Disclaimer: The content of this article is intended for informational purposes only.It does not constitute advice on tax and legal matters; neither are they financial or investment recommendations. Refer to our full disclaimer policy here.