Dhahran, Saudi Arabia – Saudi Aramco, the state oil producer, announced a decrease in net profit for 2024, with figures dropping from $121.3 billion in 2023 to $106.2 billion. The company also specified that the base dividend for the fourth quarter of 2024 would be $21.1 billion, while the performance-linked payout would only be $0.2 billion. This change marks a shift from the third quarter, where the base dividend was $20.3 billion and the performance-linked dividend stood at $10.8 billion.
The decline in net profit for Aramco is attributed to lower oil prices, impacted by a global increase in crude production and a decrease in demand. The average price for global benchmark Brent crude futures in 2024 was $80 per barrel, a slight decrease from the $82 average in 2023. As a result, Aramco’s revenue also saw a drop, falling to $436.6 billion in 2024 compared to $440.8 billion in the previous year.
The news of Aramco’s financial performance is significant in the energy sector, reflecting broader trends in the oil market. The company’s announcement sheds light on the challenges faced by oil producers in a changing global landscape, where geopolitical factors and market dynamics play a crucial role in shaping industry outcomes.
Analysts suggest that the decline in Aramco’s profits highlights the need for oil companies to adapt to a shifting market environment. With ongoing fluctuations in oil prices and demand patterns, businesses like Aramco are compelled to adopt strategies that ensure resilience and sustainability in the face of uncertainty.
Overall, the latest financial report from Aramco underscores the complexities of the oil industry and the necessity for companies to navigate challenges while maintaining financial stability. As one of the largest oil producers in the world, Aramco’s performance is closely watched by investors and industry experts for insights into the broader economic landscape and future trends in the energy sector.