Saudi Arabia’s state-owned oil giant Aramco has reported a decline in net profit to $106.2 billion for 2024, down from $121.3 billion the previous year. The company expects total dividends of $85.4 billion for 2025, a significant decrease from last year’s $124.2 billion.
Lower oil prices have impacted Aramco’s bottom line, with net profit falling to $106.2 billion in 2024 due to increased crude production worldwide and reduced demand. The realized oil price per barrel decreased to $80.2 from $83.6 the previous year. Revenue also declined to $436.6 billion in 2024 compared to $440.8 billion in 2023.
Aramco’s dividend, the highest in the world, has been a key factor in boosting Saudi Arabia’s state coffers. However, the announced cut will have an impact on the kingdom’s budget deficit, which has been widening amid weaker oil prices and increased spending on megaprojects under Saudi Crown Prince Mohammed Bin Salman’s Vision 2030 campaign.
The company has made adjustments to its dividend payout for the fourth quarter, with a base dividend of $21.1 billion and a performance-linked dividend of $200 million. This compares to previous quarters’ payouts, which were also lower due to the decline in oil prices.
Source: https://www.cnbc.com/2025/03/04/saudi-oil-giant-aramco-posts-drop-in-full-year-profit-slashes-dividend.html