Saudi Aramco has announced impressive financial results for the second quarter and first half of 2024, displaying impressive performance and strategic advancements. The company reported a net income of $29.1 billion for Q2 and $56.3 billion for the first half of the year. Cash flow from operating activities stood at $31.1 billion in Q2 and $64.7 billion for H1. Free cash flow also showed robust figures, with $19.0 billion in Q2 and $41.7 billion for the half-year.
Aramco’s gearing ratio improved to -0.5% as of June 30, 2024, a significant increase from -6.3% at the end of 2023. The company declared a base dividend of $20.3 billion for Q2, plus a performance-linked dividend of $10.8 billion, to be paid in the third quarter. For 2024, Aramco expects to announce total dividends of $124.2 billion, leading the industry.
Investor confidence remains high with strong demand for Aramco’s secondary public offering and a $6.0 billion bond issuance. The company is also progressing in its strategic initiatives, including a major expansion of its gas production, which aims for a 60% increase by 2030. Aramco has recently secured contracts worth over $25 billion to support this goal.
Additionally, Aramco has agreed to acquire a 10% stake in HORSE Powertrain Limited, a global powertrain solutions company, and has made a notable international retail move by purchasing a 40% stake in Gas & Oil Pakistan Ltd. The company also plans to install Saudi Arabia’s first quantum computer through a new agreement with Pasqal.
Aramco President & CEO Amin H. Nasser highlighted the company’s achievements, emphasizing their market-leading performance and commitment to sustainable, progressive dividends. Nasser noted the strategic advances in gas production, new energy investments, and global retail expansion as key to their long-term growth and value creation.
