Aramco Reports Over 12% Profit Fall in 2024

Tuesday, March 4, 2025
(Credit: Aramco)

Saudi oil giant Aramco said on Tuesday it expects to declare total dividends of $85.4 billion in 2025, nearly 30% less than last year, after reporting a drop in profits as a result of lower sales and higher costs.

For the first quarter of 2025, the company declared just $200 million in performance-linked dividends, a fraction of last year's quarterly payouts.

Last year's dividends of over $124 billion included about $43.1 billion in performance-linked dividends, a mechanism introduced in 2023 on top of base dividends that are paid regardless of results.

Aramco has long been a cash cow the Saudi state and its bumper payouts last year helped contain the kingdom's fiscal deficit. The government directly owns 81.5% of Aramco, while the Public Investment Fund (PIF), the kingdom's sovereign wealth fund, controls another 16% and is also a beneficiary of the payouts.

Aramco said its net profit fell over 12% to $106.2 billion in 2024. Average realised oil prices eased to $80.2 last year from $83.6 in 2023, Aramco said in a presentation.

"The decrease was primarily driven by lower revenue and other income related to sales, higher operating costs, as well as lower finance and other income," the company said in a stock exchange filing.

Aramco has been pumping crude at roughly three quarters of its capacity since mid-2023, when Saudi Arabia announced its biggest output reduction in years on top of earlier cuts agreed with allied producing countries.

Aramco made net income of about $22.34 billion in the three months ending December 2024, according to Reuters calculations, a nearly 19% drop from the same period a year earlier.

Average realised oil prices were at $73.1 in that quarter, nearly 15% lower than a year earlier.

Aramco said it expected to make capital investments of between $52 billion and $58 billion this year after reporting investments of $53.3 billion in 2024.

Last year's free cash flow declined almost 16% from 2023 to $85.3 billion.

($1 = 3.7503 riyals)


(Reuters - Reporting by Yousef Saba; Editing by Christopher Cushing, Muralikumar Anantharaman and Tomasz Janowski)

Categories: Finance Middle East Industry News Activity Oil and Gas

Related Stories

Island Frontier MSV Wraps Up West Africa Campaign for Oceaneering

Island Frontier MSV Wraps Up West Africa Campaign for Oceaneering

Portuguese Firm Bags $280M for Maintenance Work on Petrobras' Platforms

Portuguese Firm Bags $280M for Maintenance Work on Petrobras' Platforms

ADNOC Finds Partner for Oil and Gas Well Completion Solutions

ADNOC Finds Partner for Oil and Gas Well Completion Solutions

Current News

Aker Solutions Awarded Contract for BalWin2 Offshore Wind Project

Nigeria Introduces Oil Tax Relief for Cost-Cutting Measures Implementation

Gazelle Secures Multi-Million Funding for Floating Wind Demo

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

Subscribe for OE Digital E‑News

Offshore Engineer Magazine