Saudi Arabia's state oil company Aramco has posted profits of $106.25 billion (€100 billion) in 2024, down 12 percent on the previous year, as falling energy prices now curb the kingdom's multi-trillion-dollar development plans.
Aramco, formally known as Saudi Arabian Oil Co, had revenue of $436 billion in 2024, according to data filed on the Tadawul Stock Exchange in Riyadh. That compares with $440.88 billion in 2023.
Aramco has posted annual profit of $121 billion in 2023, below its 2022 record, in part due to lower energy prices.
“The decline was a result of lower revenue and other sales-related income, higher operating costs, and lower financial and other income,” Aramco said in a statement.
Aramco shares were trading at about $7.33 a share on Tuesday, down from a year-long high of $8.71. They have fallen over the past year as oil prices have fallen. Benchmark Brent crude is trading at $73, down 10 percent this year.
Aramco's market capitalization is $1.74 trillion, making it the world's sixth-most valuable company after Apple, Microsoft, Nvidia, Amazon and Google owner Alphabet.
Aramco announced a dividend of US$21.36 billion for the fourth quarter, including a significantly smaller operating dividend of US$220 million.
The company plans to pay out $85.4 billion in dividends this year, a significant decrease that will further reduce the cash the Saudi monarchy can count on this year.
“Our strong net profit and increased base dividend demonstrate Aramco’s outstanding resilience,” Aramco CEO and President Amin H. Nasser said in a statement.
Saudi Arabia's de facto ruler, Crown Prince Mohammed bin Salman, is already building a linear city in the desert as part of his $500 billion NEOM project in Saudi Arabia's western desert near the Red Sea.
It will also need to build tens of billions of dollars worth of new stadiums and infrastructure ahead of the 2034 FIFA World Cup, which will be held in the kingdom.
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At the same time, he also promised President Donald Trump a potential US$600 billion investment to lure him to the kingdom during his first overseas trip as president.
Saudi Arabia is also being considered as a possible venue for a meeting between Mr Trump and Russian President Vladimir Putin over the war in Ukraine.
Sourse: breakingnews.ie
