Aramco Reports a decline in its Net Income in Q1 2024
The Saudi Arabian Oil Company, commonly known as Aramco, disclosed its financial outcomes for the initial quarter of 2024, revealing a decrease in net income.
2 min
Specifically, the company reported a net income of SR102.3 billion ($27.3 billion) for the first quarter, a decline from SR119.5 billion ($31.9 billion) recorded in the corresponding quarter of the previous year.
Aramco Q1 Financial Overview
The statement from Aramco also highlighted a slight reduction in cash flow from operating activities, which totaled SR126 billion ($33.6 billion) compared to SR148.6 billion ($39.6 billion) in the first quarter of 2023. Additionally, free cash flow decreased to SR85.3 billion ($22.7 billion) from SR115.9 billion ($30.9 billion).
Improvements were noted in the gearing ratio, which was reported at -3.8% as of March 31, 2024, an enhancement from -6.3% at the end of 2023.
Despite the fall in net income, Aramco anticipates announcing substantial dividends for the year, totaling SR466.1 billion ($124.3 billion). This includes base dividends of SR304.4 billion ($81.2 billion) and performance-linked dividends of SR161.7 billion ($43.1 billion).
The company also reported the award of SR28.9 billion ($7.7 billion) in contracts for the expansion of the Fadhili Gas Plant, aimed at increasing its processing capacity by 1.5 billion standard cubic feet per day (bscfd). Furthermore, Aramco announced significant additions to its proven gas reserves and the completion of a strategic acquisition, purchasing 100% equity in the Chilean retailer Esmax, which supports its downstream expansion strategy.
Aramco’s President and CEO, Amin H. Nasser, remarked on the company’s resilience and its pivotal role as a leading global energy supplier. He emphasized the ongoing execution of Aramco’s long-term strategy, particularly in expanding its gas business and enhancing its globally integrated downstream value chain.
Nasser expressed optimism about the company’s future contributions to the energy transition, highlighting the balance between addressing climate challenges and ensuring the provision of affordable, reliable, and flexible energy supplies.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Employment grew for the 16th consecutive month as companies expanded.
2 min
According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
