• Q1 net income remains robust as Company progresses its growth strategy
• Net income: $27.3 billion (Q1 2023: $31.9 billion)
• Cash flow from operating activities: $33.6 billion (Q1 2023: $39.6 billion)
• Free cash flow(1): $22.8 billion (Q1 2023: $30.9 billion)
• Gearing ratio(1): -3.8% as at March 31, 2024, compared to -6.3% at end of 2023
• Q1 2024 base dividend of $20.3 billion and the fourth performance-linked dividend distribution of $10.8 billion to be paid in the 
• second quarter 
• Company expects total dividends of $124.3 billion(2) to be declared in 2024, including base dividend of $81.2 billion(2) and performancelinked dividend of $43.1 billion(2)
• $7.7 billion of engineering, procurement, and construction contracts awarded for Fadhili Gas Plant expansion, which is expected to  add 1.5 bscfd of processing capacity
• Company announced addition of 15 tscf to proven gas reserves and two billion stock tank barrels of condensate at Jafurah  unconventional field
• Aramco completed its acquisition of a 100% equity stake in Chilean retailer Esmax, supporting the Company’s downstream expansion 
• Overall venture capital funding to more than double to $7.5 billion, expanding the Company’s ability to finance disruptive new technologies in a variety of sectors, including the digital and sustainability fields

(1) Non-IFRS measure
(2) Includes dividends already declared in Q1 2024 and Q2 2024. Exact amounts and eligibility dates for the remaining dividends to be declared in 2024 will be announced, if and when declared at the Board’s sole discretion, after considering the Company’s financial position and ability to fund commitments including growth capital plans, in accordance with the Company’s dividend distribution policy.

Amin H. Nasser, President and CEO:
“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 recognizes the need for affordable, reliable, and flexible energy supplies.” 

First quarter highlights 

Global market conditions in the first quarter of 2024 improved compared to the previous quarter, driven by increased crude oil prices as a result of lower global oil inventories and higher forecasted demand. Through its low-cost upstream operations and strategically integrated Downstream business, Aramco captured value from these market conditions and delivered robust earnings and free cash flow. In line with its aim to maximize value for shareholders, the Board declared a base dividend of SAR 76.1 billion ($20.3 billion) and the fourth distribution of the performance-linked dividends of SAR 40.4 billion ($10.8 billion), bringing the total declared dividends for the first quarter to SAR 116.5 billion ($31.1 billion). 

Aramco believes it is well positioned to help meet the world’s growing need for affordable and reliable energy, and that oil and gas will continue to be an important part of the global energy mix. The Company continues to implement its capital program, with the growth in capital spending directed mainly towards upstream liquids and gas, downstream liquids to chemicals, and new energies such as renewables, lower-carbon fuels, and blue ammonia and hydrogen. Capital expenditures in the first quarter were SAR 40.6 billion ($10.8 billion), reflecting the Company’s intention to increase investment to capture unique growth opportunities and create long-term value for shareholders. 

During the quarter, the Company announced the expansion of its venture capital funding available to Aramco Ventures by SAR 15.0 billion ($4.0 billion). Half of the new funding will be directed toward disruptive technologies outside the energy sector, with the remaining portion earmarked for late-stage, larger-ticket ventures in the sustainability and digital domains. The increased funding will bring the total investment funds in Aramco’s venture capital programs to SAR 28.1 billion ($7.5 billion), including Wa’ed Ventures. 

In March 2024, the Government announced it had transferred 8.0% of the Company’s issued shares to PIF’s wholly-owned companies. This private transfer did not affect the Company’s total number of issued shares and has no impact on the Company’s operations, strategy, dividend distribution policy, or governance framework. The Government remains Aramco’s largest shareholder, retaining an 82.19% direct shareholding. 

In April 2024, Aramco announced a four-year global partnership to become FIFA’s Major Worldwide Partner with rights across multiple events, including the FIFA World Cup 26™ and FIFA Women’s World Cup 2027™. The partnership, which runs until the end of 2027, builds on a shared commitment to innovation and development, and will combine football’s unique global reach with Aramco’s history of championing innovation and community engagement. Through the partnership, Aramco aims to create impactful social initiatives and enable vibrant communities.

Upstream 

Aramco achieved total hydrocarbon production of 12.4 mmboed in the first quarter, reflecting its safe, reliable operations and unique operational flexibility.

In January 2024, the Government directed Aramco to maintain MSC at 12.0 mmbpd. This directive will have no impact on announced, near term projects including the Dammam development and the Marjan, Berri, and Zuluf crude oil increments. Production from these projects will be used to maintain MSC at 12.0 mmbpd, which provides operational flexibility to increase production and supports Aramco’s unique ability to rapidly respond to changing market conditions. Key developments during the quarter for these projects include the following:

• Construction activities continued for the Dammam development project, which is expected to add crude oil production of 25 mbpd in 2024 and 50 mbpd in 2027; 
• Construction and procurement activities continued on the Marjan and Berri crude oil increments, which are expected to be onstream by 2025 and add crude oil production capacity of 300 mbpd and 250 mbpd, respectively; and, 
• Construction and engineering work progressed at the Zuluf crude oil increment, which is expected to process 600 mbpd of crude oil from the Zuluf field through a central facility by 2026.

Consistent with the Company’s strategy to increase gas production by more than 60% over 2021 production levels by 2030, subject to domestic demand, and to develop an integrated global LNG business, Aramco delivered a number of key developments in the quarter:

• Announced the addition of 15 tscf of raw gas and two billion stock tank barrels of condensate as proven reserves at the Jafurah unconventional field.
• Progressed design, procurement, and construction activities at the Jafurah Gas Plant, part of the Jafurah unconventional gas field development that is expected to commence production in 2025 and gradually increase natural gas deliveries to reach a sustainable rate of 2.0 bscfd by 2030; 
• Continued construction and procurement activities at the Tanajib Gas Plant, part of the Marjan development program. The Plant is expected to be onstream by 2025, adding 2.6 bscfd of additional processing capacity from the Marjan and Zuluf fields; 
• Awarded SAR 28.9 billion ($7.7 billion) of engineering, procurement, and construction contracts for the expansion of the Fadhili Gas Plant, which is expected to add additional processing capacity of 1.5 bscfd by 2027; and, 
• Completed the acquisition of a minority stake in MidOcean, which subsequently acquired interests in a portfolio of integrated Australian LNG projects.

KeyFacts Energy: Aramco Saudi Arabia country profile