Decline in Net Profit and Revenue
Aramco Reports a drop in net profit for the full year of 2024, attributing the decline to lower global crude prices and slowing demand. The company recorded a net profit of $106.2 billion, down from $121.3 billion in 2023. Revenue also saw a slight decrease, falling to $436.6 billion in 2024 compared to $440.8 billion the previous year.
The decline in earnings reflects a broader trend in the oil industry, where an increase in global crude production and weaker demand have weighed on prices. Aramco’s realized oil price dropped from $83.6 per barrel in 2023 to $80.2 per barrel in 2024. Despite this, the company maintained its position as one of the most profitable firms globally, though financial pressures remain amid a changing energy market.
Dividend Reduction and Impact on Saudi Finances
Aramco Reports a sharp reduction in its total dividend payout for 2025, estimating it at $85.4 billion—significantly lower than the $124.2 billion disbursed in 2024. The company also made adjustments to its fourth-quarter dividend structure. While the base dividend increased to $21.1 billion, the performance-linked payout was drastically cut to just $200 million, a sharp decline from the $10.8 billion paid in the previous quarter.
The company’s dividend payouts, which remain the highest globally, are a crucial source of revenue for the Saudi government. The dividend reduction comes at a time when the kingdom is grappling with a widening budget deficit, exacerbated by lower oil revenues and increased state spending on large-scale infrastructure and economic diversification initiatives under the Vision 2030 program.
Debt Levels and Financial Position
Aramco Reports an increase in total borrowings, rising to $319.3 billion in 2024 from $290.1 billion in 2023. However, the company managed to reduce its net debt, which fell from $102.8 billion in the previous year to $78 billion.
As Saudi Arabia continues its push to diversify its economy away from oil dependency, the state-owned energy giant’s financial performance plays a key role in funding various government-backed projects. The latest figures indicate financial adjustments amid fluctuating oil prices, which could influence future investment and economic planning in the kingdom.
Despite the challenges, Aramco Reports that it remains one of the most influential players in the global energy market, with its financial moves closely watched by investors and policymakers worldwide.
