Aramco has announced its second quarter and half-year 2024 results, reporting a net income of $29.1 billion in the second quarter and $56.3 billion for the first half of the year.

 

The results show a strong performance as the energy major advances its long-term growth strategy, Aramco said.

 

Cash flow from operating activities reached $31.1 billion in the second quarter and $64.7 billion in the first half, while free cash flow stood at $19 billion in the second quarter and $41.7 billion in the first half.

 

Aramco's financial position remains robust, with a gearing ratio1 of -0.5 per cent as of June 30, 2024, compared to -6.3 per cent at the end of 2023, the company said.

 

The company is also set to pay a second quarter 2024 base dividend of $20.3 billion and a performance-linked dividend distribution of $10.8 billion in the third quarter. In 2024, Aramco expects to declare industry-leading total dividends of $124.2 billion, it said.

 

Aramco's strategic expansion continues as the company successfully completed a secondary public offering of its shares and a $6 billion bond offering, both of which received strong demand from investors worldwide.

 

The company has also made significant progress in its gas expansion efforts, announcing contract awards worth more than $25 billion as it targets a sales gas production growth of more than 60 per cent by 2030, compared to 2021 levels.

 

Furthermore, Aramco has agreed to acquire a 10 per cent equity interest in Horse Powertrain Limited, a global powertrain solutions company established by Renault Group and Geely.

 

The company has also expanded its international retail presence by successfully acquiring a 40 per cent equity stake in Gas & Oil Pakistan.

 

Additionally, Aramco has reached an agreement with Pasqal to install the first quantum computer in the Kingdom of Saudi Arabia.

 

Amin Nasser, Aramco President & CEO, said: “We have delivered market-leading performance once again, with strong earnings and cash flows in the first half of the year. Leveraging these strong earnings, we continued to deliver a base dividend that is sustainable and progressive, and a performance-linked dividend that shares the upside with our shareholders.

 

“We have also continued to create and deliver both value and growth, as demonstrated by the positive investor response to the government’s secondary public offering of Aramco shares and our recent $6 billion bond issuance. Our drive to create value is supported by our distinctive long-term competitive advantages, our exceptional financial resilience through cycles, and our strong balance sheet.

 

“Building on these strengths, we also made significant progress in key strategic areas during the second quarter — from advancing our gas program and expanding our new energies portfolio, to partnering with leading car manufacturers on lower-emission vehicle technologies and growing our global retail network.

 

“These are exciting times for Aramco as we continue to seek new opportunities to enhance our portfolio and our capabilities to enable a secure and more sustainable energy future, he concluded.” --TradeArabia News Service