Aramco Reports Strong Earnings Despite Profit Decline

Saudi Aramco reported a net income of $56.3 billion for the first half of 2024, with a strong performance in earnings and cash flow despite a slight decline in net profits compared to the previous year. The company announced a second-quarter net income of $29.1 billion and declared dividends totaling $31.1 billion, comprising a base dividend of $20.3 billion and a performance-linked dividend of $10.8 billion. Revenues for the half-year were $220.7 billion, slightly up from $218.6 billion the previous year, although lower crude oil volumes and weakening refining margins impacted profits. Aramco plans to distribute industry-leading total dividends of over $124 billion for the year. The company has also been focusing on expanding its gas program and new energy portfolio, and partnering with car manufacturers on lower-emission technologies. The performance was well-received, with shares trading higher following the announcement.