Aramco has announced third quarter 2024 results

• Net income: $27.6 billion (Q3 2023: $32.6 billion)
• Cash flow from operating activities: $35.2 billion (Q3 2023: $31.4 billion) 
• Free cash flow: $22.0 billion (Q3 2023: $20.3 billion) 
• Gearing ratio: 1.9% as at September 30, 2024, compared to -6.3% at end of 2023
• Q3 2024 base dividend of $20.3 billion and performance-linked dividend of $10.8 billion declared for distribution in the fourth quarter 
• Q3 2024 net income in line with analyst consensus, despite certain non-cash charges of c.$0.9 billion
• Capital expenditures totaling $13.2 billion in Q3 support long-term strategic growth
• Strong demand for $3.0 billion international sukuk issuance, which further diversifies investor base and enhances liquidity profile
• Upstream developments enhance production flexibility and progress gas expansion 
• Renewables program progresses with financial close for three solar PV projects, with anticipated combined capacity of 5.5 GW

Commenting on the results, Aramco President & CEO Amin H. Nasser said: 
“Aramco delivered robust net income and generated strong free cash flow during the third quarter, despite a lower oil price environment. We also progressed our upstream developments, strengthened our downstream value chain, and advanced our new energies program as we continue to invest through cycles. 

“Our recent $3.0 billion international sukuk issuance highlighted strong investor confidence in Aramco and we can be proud of the significant strides the Company continues to make, all while sustaining our high levels of profitability, operational performance and reliability. 

“As we focus on strategic growth opportunities and capturing value through integration and diversification, we intend to maintain our positive momentum and cement our position as a leading global energy and petrochemicals player.”

Crude oil demand remained resilient in the third quarter, with oil demand forecasted to reach record levels in 2024. Through its low-cost Upstream production and strategically integrated Downstream business, Aramco delivered strong earnings and free cash flow, demonstrating its ability to create shareholder value across cycles. For the third quarter, the Board declared a base dividend of SAR 76.1 billion ($20.3 billion) and the sixth distribution of performance-linked dividends of SAR 40.4 billion ($10.8 billion), bringing the total declared dividends for the third quarter to SAR 116.5 billion ($31.1 billion).

During the quarter, Aramco continued to execute the largest capital program in its history as it invests in unique growth opportunities to seek accretive returns. Capital expenditures for the quarter were SAR 49.6 billion ($13.2 billion), bringing year-to-date capital expenditures to SAR 135.7 billion ($36.2 billion).

In October, Aramco announced the completion of its SAR 11.25 billion ($3.0 billion) international trust certificates (sukuk) issuance, split into two tranches maturing in 2029 and 2034, respectively. These were listed on the London Stock Exchange’s Main Market, and the proceeds from the issuance will be utilized for general corporate purposes. The successful issuance of the sukuk demonstrates Aramco’s efforts to widen and diversify its debt investor base, further enhance liquidity, and reestablish its sukuk yield curve. The offering received strong demand, evidenced by the six-times oversubscribed sukuk order book, which reflects Aramco’s distinct credit profile that is supported by its financial resilience and competitive advantages. The sukuk issuance follows Aramco’s international bond offering in July 2024 which raised SAR 22.5 billion ($6.0 billion), reflecting the market’s belief in Aramco’s longevity and the strength of its balance sheet.

Upstream Aramco continued to deliver safe, reliable, and efficient operations in the third quarter of 2024, achieving total hydrocarbon production of 12.7 mmboed. 

The Company continued to advance the following projects to support maintaining its MSC at 12.0 mmbpd and preserve its unique ability to rapidly respond to changing market conditions:

• The required water injection operation to support the reservoir and crude oil production for the Dammam development project has started as planned. Construction activities also continued for phase two, which will add an additional 50 mpbd of crude oil production capacity in 2027; 
• Procurement and construction activities progressed for the Marjan and Berri crude oil increments, which are expected to come onstream in 2025 and add production capacity of 300 mbpd and 250 mbpd, respectively; and, 
• Engineering, procurement, and construction activities were advanced at the Zuluf oil increment project, which is expected to process 600 mbpd of crude oil from the Zuluf field in 2026.

Aramco also delivered several developments in support of its strategy to expand and develop its gas and global LNG businesses:    

• The Jafurah Gas Plant, part of the Jafurah unconventional gas field development, continued procurement and construction activities, with phase one expected to commence production in 2025. Production from Jafurah is expected to reach a sustainable sales gas rate of 2.0 bscfd by 2030, in addition to significant volumes of ethane, NGL, and condensate; 
• Construction and procurement activities progressed at the Tanajib Gas Plant, part of the Marjan development program. The Plant is expected to come onstream by 2025 and add 2.6 bscfd of additional raw gas processing capacity from the Marjan and Zuluf fields;
• The Hawiyah Unayzah Gas Reservoir Storage, the first underground natural gas storage in the Kingdom, successfully completed its first full cycle of gas storage and reproduction. The program can provide up to 2.0 bscfd of natural gas for reproduction into the Master Gas System based on demand; and, 
• Aramco made a further investment in MidOcean to fund MidOcean Energy’s acquisition of an additional 15% interest in Peru LNG (PLNG), increasing MidOcean Energy’s stake in PLNG from 20% to 35%.

Downstream 

Aramco continued to pursue opportunities in the third quarter to enhance its downstream value chain, further integrate and balance its portfolio, and increase the conversion of its hydrocarbons into high-value materials. In the first nine months of the year, Downstream utilized approximately 53% of Aramco’s crude oil production, and the Company also maintained its remarkable reputation for dependable operations with supply reliability of 99.8% in the third quarter.

Sustainability

Aramco continued to make progress advancing its four sustainability focus areas, including climate change and the energy transition.

Aramco’s wholly-owned subsidiary SAPCO, along with partners ACWA Power and PIF, announced the financial closure for three solar photovoltaic projects worth SAR 12.0 billion ($3.2 billion). The Haden and Muwayh projects in Makkah province each have a planned production capacity of 2.0 GW, while the Al-Khushaybi project in Qassim province has a planned production capacity of 1.5 GW. Commercial operations of the projects, for which SAPCO holds a 30% ownership, are expected to commence in Q1 2027 with the Saudi Power Procurement Company being the primary off taker.

In September, Aramco and China National Building Material Group Co., Ltd. announced a strategic collaboration to explore new opportunities in advanced materials and industrial development via a five-year Cooperation Framework Agreement. Areas identified for collaboration include the possible establishment of manufacturing facilities in the Kingdom to produce wind turbine blades, hydrogen storage tanks, lowercarbon building materials, and energy storage solutions. This strategic collaboration aims to capitalize on respective areas of expertise to support Aramco’s efforts to grow manufacturing capabilities in Saudi Arabia, and advance the materials transition.

KeyFacts Energy: Aramco Saudi Arabia country profile