Dhahran, November 5, 2024 – Saudi Aramco, the world's largest integrated oil and gas company, announced its financial results for the third quarter of 2024, showcasing strong operational and financial performance. Despite a challenging oil price environment, the company reported a net income of SAR103.4 billion ($27.6 billion), slightly lower than the SAR122.2 billion reported in the same quarter last year. The announcement underscored Aramco's strategic resilience and robust cash generation capacity as it pursues ambitious growth and sustainability objectives.
The third-quarter financial results revealed a healthy rise in operating cash flow, amounting to SAR132.1 billion ($35.2 billion), up from SAR117.6 billion ($31.3 billion) in Q3 of 2023. Free cash flow for the period also rose to SAR82.5 billion ($22 billion), compared to SAR76.3 billion in the previous year, underscoring the company’s cash generation strength. The company’s debt-to-equity ratio stood at 1.9% as of September 30, 2024, an increase from -6.3% at the end of 2023, reflecting strategic financial repositioning to support growth and enhance shareholder value.
Additionally, the company declared base dividends of SAR76.1 billion ($20.3 billion) and performance-linked dividends of SAR40.4 billion ($10.8 billion) for Q3 2024, both of which will be distributed in the fourth quarter. This dividend payout continues Aramco's commitment to delivering value to its shareholders.
Aramco reported capital expenditures of SAR49.6 billion ($13.2 billion) for the third quarter, directed toward supporting its long-term strategic growth initiatives. Key developments included advancements in upstream and downstream projects, as well as initiatives to diversify the company’s energy portfolio.
In a bid to strengthen its liquidity and investor base, Aramco issued SAR11.25 billion ($3 billion) in international sukuk. The successful issuance demonstrates the robust confidence global investors have in Aramco’s stability and strategic direction, enhancing both its liquidity and operational flexibility.
The company also made significant headway in its renewable energy initiatives, with the financial close of three new photovoltaic solar projects. These solar projects are anticipated to deliver a combined capacity of 5.5 gigawatts, underscoring Aramco’s commitment to diversifying its energy mix and contributing to global sustainability goals.
Amin H. Nasser, President and CEO of Aramco, highlighted the company’s resilience amid market fluctuations and its ongoing commitment to diversification and sustainability. “Aramco delivered robust net income and generated strong free cash flow during the third quarter, despite a lower oil price environment,” Nasser said. “We also progressed our upstream developments, strengthened our downstream value chain, and advanced our new energies program as we continue to invest through cycles.”
Nasser emphasized the significance of the company’s recent sukuk issuance, noting that the $3 billion offering demonstrated substantial investor confidence. “We can be proud of the significant strides the company continues to make, all while sustaining our high levels of profitability, operational performance, and reliability,” he stated.
He reiterated Aramco’s dedication to strategic growth, value capture through integration and diversification, and the company’s positioning as a leader in global energy and petrochemicals. “As we focus on strategic growth opportunities and capturing value, we intend to maintain our positive momentum and cement our position as a leading global energy and petrochemicals player,” he added.
With a strong financial and operational base, Aramco remains focused on advancing its integrated value chain, exploring strategic growth opportunities, and expanding its role in the global energy transition. The company’s ongoing investments in renewable energy, coupled with its foundational oil and gas activities, signify a balanced approach to long-term sustainability and profitability. Aramco's financial and strategic outlook remains positive, supported by a diversified investment portfolio and a commitment to delivering value to shareholders and stakeholders alike.
This latest financial performance highlights Aramco's resilience and adaptability, ensuring the company remains well-positioned to thrive amidst evolving global energy demands and market conditions. As Aramco continues to progress its ambitious growth and sustainability plans, it remains steadfast in its goal to be a frontrunner in the global energy sector.