RIYADH — Saudi Aramco achieved strong performance and positive progress in its long-term growth strategy with its profits increased on a quarterly basis by 6.6 percent, reaching SR109 billion ($29.1 billion) in the second quarter. This is compared to a net profit of SR 102.27 billion ($27.27 billion) during the first quarter of 2024. This quarter-on-quarter increase is primarily due to higher crude oil prices and a strong increase in the profit margins of the chemicals business, partially offset by weaker profit margins in the refining business. The company's net profits reached SR211.3 billion ($56.3 billion) in the first half of 2024, according to a press statement of the company. Aramco's net income recorded a decrease of 3.4 percent in the second quarter of 2024 compared to the same quarter in 2023. The company attributed the decrease in net profit year-on-year basis mainly to the impact of lower crude oil sales and weak profit margins in refining operations, which was partially offset by higher crude oil prices compared to the same quarter of the previous year, and lower income tax and zakat. The oil giant's net income during the first half of 2024 fell 9 percent to SR 211.28 billion ($56.34 billion), compared to SR 232.35 billion ($61.96 billion) for the same period last year. This decrease is primarily due to lower quantities of crude oil sold, weaker profit margins in the refining business, and lower financing and other income. This was partially offset by higher crude oil prices and lower royalties on crude oil production compared to the same period last year, and lower income taxes and zakat. The company indicated that other income related to sales amounted to SR 44.90 billion for the second quarter of 2024, compared to SR 45.75 billion for the second quarter of last year, and SR 35.81 billion for the first quarter of this year. As a result, total revenues and other income related to sales amounted to SR 470.61 billion for the second quarter of 2024 compared to SR 448.32 billion for the second quarter of 2023. Other income related to sales amounted to SR 80.71 billion for the first half of 2024 against SR 88.13 billion for the first half of 2023. As a result, total revenues and other income related to sales amounted to SR 908.46 billion for the first half of 2024. Saudi Aramco announced the distribution of basic dividends to shareholders for the second quarter of 2024, in line with the company's dividend distribution policy, which aims to distribute sustainable and increasing dividends. In addition, the company announced the fifth distribution of performance-related dividends to shareholders based on the full annual results for 2022 and 2023. The total distributed dividends amounted to SR116.45 billion ($31 billion), including SR76.06 billion ($20.28 billion) in basic dividends, and SR40.39 billion ($10.77 billion) in performance-related dividends. In a press conference after the publication of the performance results, Aramco President and CEO Amin Nasser said that the company has 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. 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 $6.0 billion bond issuance," he said. "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. Building on these strengths, we also made significant progress in key strategic areas during the second quarter — from advancing our gas program and expanding our new energies portfolio, to partnering with leading car manufacturers on lower-emission vehicle technologies and growing our global retail network," Nasser said while adding that 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.
