Aramco announces strong Q1 results, expansion initiatives
, 12 days ago
Aramco has announced its first quarter 2024 results, revealing that its net income remains robust as the company progresses its growth strategy. The net income for Q1 2024 was $27.3 billion, compared to $31.9 billion in Q1 2023.
The cash flow from operating activities was $33.6 billion in Q1 2024, down from $39.6 billion in Q1 2023. Additionally, the free cash flow for Q1 2024 was $22.8 billion, a decrease from $30.9 billion in Q1 2023.
The gearing ratio as of March 31, 2024, was -3.8n per cent, showing improvement compared to -6.3 per cent at the end of 2023.
In terms of dividends, Aramco declared a Q1 2024 base dividend of $20.3 billion and announced a fourth performance-linked dividend distribution of $10.8 billion, which will be paid in the second quarter.
The company expects to declare a total of $124.3 billion in dividends in 2024, including a base dividend of $81.2 billion and a performance-linked dividend of $43.1 billion.
Furthermore, Aramco awarded $7.7 billion worth of engineering, procurement, and construction contracts for the expansion of the Fadhili Gas Plant.
This expansion project is expected to add 1.5 billion standard cubic feet per day (bscfd) of processing capacity. In terms of reserves, the company announced the addition of 15 trillion standard cubic feet (tscf) to proven gas reserves and two billion stock tank barrels of oil at the Jafurah unconventional field.
Aramco also completed its acquisition of a 100 per cent equity stake in Chilean retailer Esmax, which supports the company's downstream expansion efforts.
In addition, the company plans to more than double its overall venture capital funding to $7.5 billion. This increased funding will enhance Aramco's ability to finance disruptive new technologies in various sectors, including the digital and sustainability fields.
Commenting on the results, Aramco President & CEO Amin Nasser 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.”
He added: “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.”
He concluded: “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 recognizes the need for affordable, reliable, and flexible energy supplies.” --OGN/TradeArabia News Service
