Saudi Aramco, the world’s largest oil exporter, reported a net income of $27.3 billion for the first quarter ending March 31, marking a decrease from $31.9 billion during the same period last year. Despite the decline, the company remains committed to delivering a total dividend of $31 billion to the Saudi government and other shareholders.
The first-quarter net profit decline of 14% year-on-year is attributed to lower oil prices and production. This figure aligns with analyst expectations, as reported by Reuters.Additionally, Saudi Aramco announced a free cash flow of $22.8 billion for the quarter, down from $30.9 billion in the first quarter of 2023, and cash flow from operating activities of $33.6 billion compared to $39.6 billion the previous year.
The dividend distribution includes a base dividend of $20.3 billion and a fourth performance-linked dividend of $10.8 billion, to be paid in the second quarter. Saudi Aramco anticipates total dividends of $124.3 billion to be declared in 2024.
Despite the challenges, Saudi Aramco continues to invest significantly in downstream operations and gas discovery and production. Amin Nasser, President and CEO of Aramco, emphasized the company’s long-term strategy and progress in expanding its gas business and globally-integrated downstream value chain while prioritizing shareholder value.
In his statement, Amin Nasser affirmed, “We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally-integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders.”
