DUBAI (AP) – Saudi Arabia’s state-owned oil giant Aramco reported a USD106.25 billion profit in 2024 yesterday.
Saudi’s Crown Prince Mohammed bin Salman has been digging a straight-line city in the desert for his USD500 billion project at NEOM in Saudi Arabia’s western desert on the Red Sea.
He also will need to build tens of billions of dollars’ worth of new stadiums and infrastructure ahead of the kingdom hosting the 2034 FIFA World Cup.
Meanwhile, he’s also pledged potentially USD600 billion in United States investments to President Donald Trump to entice him to the kingdom on his first foreign trip as president.
All that and OPEC+ moving toward increasing production means Saudi Arabia likely will need to take on new debt to fund the crown prince’s vast ambitions.
A filing on Riyadh’s Tadawul stock exchange showed Aramco, formally known as the Saudi Arabian Oil Co, had revenues of USD436 billion in 2024.
“The difference was primarily driven by lower revenue and other income related to sales, higher operating costs, as well as lower finance and other income,” Aramco said in its filing.
Stock in Aramco traded around USD7.33 a share yesterday. Benchmark Brent crude is at USD73 – down 10 per cent this year. Aramco has a market value of USD1.74 trillion, making it the world’s sixth-most valuable company behind Apple, Microsoft, NVIDIA, Amazon and Alphabet, which owns Google.
Aramco will pay dividends of USD21.36 billion for the fourth quarter, which includes a far-smaller performance dividend of USD220 million.
The company expects to pay dividends of USD85.4 billion this year, which is far lower and will further erode cash that Saudi Arabia’s monarchy can expect for the year.
“Our strong net income and increased base dividend illustrate Aramco’s exceptional resilience,” Aramco Chief Executive Officer and President Amin H Nasser said in a statement.
