Saudi Aramco's profits reach 348 billion riyals and it distributes huge dividends
Saudi Aramco profits: Strong financial performance despite global challenges
Saudi Aramco, the global oil giant and the world’s largest integrated energy company, announced its annual financial results, reporting profits that reflect the company’s resilience and ability to adapt to global market volatility. Net profit for the fiscal year reached SAR 348.04 billion (USD 92.81 billion). While this figure compares to SAR 393.89 billion (USD 105.04 billion) in the previous year, it remains among the highest corporate profits globally.
The economic context and reasons for the decline in profits
In analyzing these results, the company explained in an official statement published on the Saudi Stock Exchange (Tadawul) website that the relative decrease in annual profits was primarily due to the decline in crude oil prices in global markets, in addition to lower profit margins on refined and chemical products. However, Aramco partially offset this decline by increasing sales volumes of gas, oil, and refined products, reducing operating costs, and lowering income and zakat taxes due to a decrease in taxable income. This performance reflects the company's prudent strategic management approach, which has enabled it to maintain profitability across various economic cycles.
Dividend distributions: an ongoing commitment to shareholders
Dividend payouts are among the most important factors attracting investors to Aramco shares. In this regard, the company announced a basic dividend distribution to shareholders totaling SAR 82.08 billion (USD 21.89 billion) for the last quarter, an increase of 3.5% compared to the previous quarter. This translates to a dividend of SAR 0.3393 per share, distributed across 241.92 billion eligible shares. The company set the entitlement date as March 16, with the distribution to take place on March 31. This brings the total dividends distributed for the entire year to a substantial SAR 320.4 billion, underscoring the company's commitment to a sustainable and growing dividend policy.
Revenues and capital investments
In terms of revenue, Saudi Aramco achieved total revenues of approximately SAR 1.56 trillion (USD 415.82 billion), compared to approximately SAR 1.6 trillion in the previous year. Quarterly revenues for the fourth quarter declined by 3% to SAR 416 billion. Regarding capital investment, a key driver of future growth, the company invested approximately SAR 196 billion during the year. These investments aim to enhance production capacity, expand gas operations, and develop the refining and chemicals sector.
The local and international impact of Aramco's profits
Saudi Aramco's profits play a pivotal role not only within the company but also on both the domestic and international levels. Domestically, these profits and cash dividends are a key pillar supporting the Saudi economy and financing major development projects within the framework of "Saudi Vision 2030," which aims to diversify income sources and reduce dependence on oil. Regionally and internationally, Aramco's strong financial performance enhances the stability of global energy markets and underscores Saudi Arabia's ability to meet the growing global demand for reliable and sustainable energy, thus solidifying its position as a cornerstone of the global economy.
