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.
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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.
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Saudi Arabia ranked first among countries for the non-oil exports of national origin with BD201 million (22%)
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Bahrain’s non-oil exports of national origin decreased by 6% to BD894 million ($2.37 billion) in Q2 2024 compared to the same period in 2023. The top 10 countries accounted for 64% of the total export value.
According to the Information & eGovernment Authority (iGA) in its Q2 2024 Foreign Trade report, Saudi Arabia was the leading destination for these exports, totaling BD201 million (22%). The US followed with BD75 million (8.4%), and the UAE with BD73 million (8.2%).
Unwrought aluminum alloys were the top exported product in Q2 2024, amounting to BD267 million (30%), followed by agglomerated iron ores and concentrates alloyed at BD159 million (18%) and non-alloyed aluminum wire at BD49 million (5%).
Non-oil re-exports
Non-oil re-exports increased by 4% to reach BD206 million during Q2 2024, compared to BD198 million for same quarter in 2023. The top 10 countries accounted for 86% of the re-exported value. The UAE ranked first with BD58 million (28%) followed by Saudi Arabia with BD39 million (19%) and UK with BD17 million (8%).
As per the report, turbo-jets worth BD65 million (32%) were the top product re-exported from Bahrain, followed by private cars with BD11 million (5%) and four-wheel drive with BD9 million (4%).
The value of non-oil imports has decreased by 4% reaching to BD1.41 billion in Q2 2024 in comparison with BD1.47 billion for same quarter in 2023. The top 10 countries for imports recorded 68% of the total value of imports.
China Bahrain’s biggest importer
China ranked first for imports to Bahrain, with a total of BD191 million (14%), followed by Brazil with BD157 million (11%) and Australia with BD112 million (8%).
Non-agglomerated iron ores and concentrates were the top product imported to Bahrain worth BD200 million (14%), followed by other aluminum oxide with BD101 million (7%) and parts for aircraft engines with BD41 million (3%).
As for the trade balance, which represents the difference between exports and imports, the deficit logged was BD310 million in Q2 2024 compared to BD322 million in Q2 2023.
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