Saudi state oil producer Aramco reported a decline in net profit to $106.2 billion for the year 2024, a decrease from $121.3 billion in 2023. This announcement was made on March 4, 2025, highlighting the impact of lower oil prices and reduced demand on the company’s financial performance.
- Aramco's net profit declined to $106.2 billion.
- Fourth quarter base dividend set at $21.1 billion.
- Performance-linked payout significantly decreased to $0.2 billion.
- Lower oil prices impacted Aramco's profitability.
- Revenue fell to $436.6 billion in 2024.
In 2024, Aramco’s revenue was reported at $436.6 billion, a slight decrease from $440.8 billion in 2023. The decline in profits was attributed to lower global oil prices, with Brent crude averaging $80 per barrel, down $2 from the previous year. The company also indicated that its performance-linked payout for the fourth quarter would be significantly lower at $0.2 billion compared to $10.8 billion in the third quarter.
Key financial highlights from Aramco’s report include:
- Net profit: $106.2 billion in 2024, down from $121.3 billion in 2023.
- Revenue: $436.6 billion in 2024, compared to $440.8 billion in 2023.
- Fourth-quarter base dividend: $21.1 billion, compared to $20.3 billion in Q3.
- Performance-linked dividend: $0.2 billion for Q4, down from $10.8 billion in Q3.
The drop in profits and dividends reflects broader Trends in the oil market, where increased crude production and slowing demand have pressured prices. As the global economy continues to navigate these challenges, Aramco’s financial results serve as a barometer for the oil industry.
In summary, Aramco’s financial results for 2024 indicate a significant decline in profit and dividend payouts, influenced by lower oil prices and changing market dynamics. The company’s performance underscores the ongoing challenges facing the oil sector.
