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Jeddah - Yasmine El Tohamy - RIYADH: Saudi oil giant Aramco reported a net profit of $29.1 billion for the second quarter of 2024, reflecting a 6.59 percent quarter-on-quarter increase, despite challenging market conditions.  

For the first half of the year, the company said its net income reached $56.3 billion.

Operating cash flow amounted to $64.7 billion in the six months to the end of June, with $31.1 billion of that coming in the second quarter of the year.

Amin Nasser, Aramco’s president and CEO, said: “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.”  

Aramco has declared a base dividend of $20.3 billion for the second quarter and a performance-linked dividend of $10.8 billion, which will be paid in the next three months.   

The company expects to declare total dividends of $124.2 billion for 2024, highlighting its strong financial position.  

“We have also continued to create and deliver both value and growth, as demonstrated by the positive investor response to the Government’s secondary public offering of Aramco shares and our recent $6 billion bond issuance. Our drive to create value is supported by our distinctive long-term competitive advantages, our exceptional financial resilience through cycles, and our strong balance sheet,” he added. 

The company reported $220.73 billion in revenue for the first half of the year, registering a 0.9 percent increase from SR804.8 billion in the same period of 2023, driven by higher crude oil and refined product prices, as well as higher volumes of refined and chemical products sold.  

This was partially offset by a decrease in crude oil volumes sold during the period, according to a statement on Tadawul. 

The state-owned oil giant reported total revenues of $113.52 billion in the second quarter of the year, compared to $107.35 billion for the same period in 2023.  

For the the three months to the end of June, free cash flow decreased compared to the same quarter in 2023. This decline was mainly due to lower operating cash flows from reduced earnings and unfavorable changes in working capital. 

However, this was partially offset by a reduction in cash payments for income, zakat, and other taxes. 

In June 2024, as part of the secondary public offering, Aramco acquired 137.6 million ordinary shares from the government for a cash payment of $1 billion.  

Nasser also mentioned that, building on these strengths, significant progress had been made in key strategic areas during the second quarter. 

Aramco’s secondary public offering and $6 billion bond issuance attracted significant investor interest. The company also advanced its gas expansion with over $25 billion in new contracts, aiming for a 60 percent increase in sales gas production by 2030. 

The state oil firm acquired a 10 percent stake in HORSE Powertrain Limited and a 40 percent interest in Gas & Oil Pakistan Ltd. It also partnered with Pasqal to install Saudi Arabia’s first quantum computer. 

“These are exciting times for Aramco as we continue to seek new opportunities to enhance our portfolio and our capabilities to enable a secure and more sustainable energy future,” he added.