Saudi Aramco has announced a substantial dividend distribution of $31.1 billion for the second quarter of 2024, despite a 3.4% dip in profits due to reduced crude oil sales and lower refining margins. The company's net income for the quarter was reported at 109.01 billion riyals ($29.03 billion), surpassing analyst expectations. This dividend includes $10.8 billion linked to last year's performance, showcasing Aramco's commitment to shareholder returns even amidst market fluctuations.
The Saudi government, which holds approximately 81.5% of Aramco, relies heavily on the company's financial contributions, including taxes and royalties. In response to economic challenges, the government had to sell additional shares in Aramco to raise funds, generating $12.35 billion. This highlights the intricate relationship between the state and its national oil company, as both navigate the complexities of global oil demand and pricing.
Looking ahead, Aramco anticipates total dividends of $124.2 billion in 2024, consistent with prior forecasts. The company is also focused on increasing its crude oil production capacity to 12 million barrels per day, reflecting ongoing investments in development and strategic expansion. Despite a decline in share value by about 19% this year, Aramco expresses confidence in the medium to long-term growth of oil demand, emphasizing its role as a key player in the global energy market.
