Saudi Aramco announced a net income of $29 billion for the second quarter of this year, down from $30 billion in the same period last year. The company’s half-year profits also slightly declined compared to the 2023 results.
The free cash flow decreased from $23.1 billion in the second quarter of 2023 to $18.96 billion in the second quarter of this year. Despite this, the company increased its dividends from $19.5 billion last year to $31 billion this year.
“We have 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,” said Chief Executive Amin Nasser.
Aramco’s report highlighted its strategic shift towards natural gas. The company aims to increase gas production and sales by 60% by 2030, compared to 2021 levels.
The Saudi state, which holds over 81% of Aramco, is the largest shareholder. This stake, along with a 16% holding through the Public Investment Fund, positions the state to benefit significantly from the increased dividends. These funds are crucial for Saudi Arabia’s ambitious economic diversification program, which will cost hundreds of billions of dollars.
Earlier this year, Aramco conducted a secondary share offering, raising over $12 billion. The offering was priced at the lower end of the original range, with half of the stock purchases coming from international investors.
Additionally, Aramco issued a bond offering for the first time since 2021. The $6 billion offering received orders worth $31 billion.