Aramco’s Q1 Net Income Dips Over 14% to $27bn

First Quarter Revenue Drops to $107.21 Billion (SR402.1bn) from $111.32 Billion in 2023 Q1

Saudi Aramco has reported a net income of $27.27 billion for the first quarter of 2024, down 14.4 percent from $31.87 billion in the same period a year ago. 

According to the company, the decline was attributed to reduced crude oil volumes sold, weaker refining and chemicals margins, and a decrease in finance and other income. 

The energy giant said these factors were offset by lower production royalties and a rise in crude oil prices year-on-year.  

In addition, the revenue of the Saudi Government-backed company fell to $107.21 billion from $111.32 billion in the first quarter of 2023.  

Meanwhile, Aramco’s total hydrocarbon production averaged 12.4 million barrels of oil equivalent per day during the quarter.  The crude oil processed by Aramco’s downstream operations represented 51% of the company’s total crude oil production. 

The company’s capital expenditures in the first quarter increased to $10.83 billion from $8.74 billion in the same period of 2023.  

Aramco announced that the first quarter base dividend of $20.3 billion and the fourth performance-linked dividend distribution of $10.8 billion will be paid in Q2 2024. 

Amin Nasser, Aramco president and CEO said: “Our first-quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries, and to people worldwide.

“We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders. 

“Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognises the need for affordable, reliable, and flexible energy supplies.”