Saudi oil giant Aramco reported a half-year profit of $56.3 billion, a decrease from the previous year, attributed to concerns about a slowing global economy. Despite this, the company's overall revenue for the half-year increased to $220.7 billion from $218.6 billion the year before. In 2023, profits were $61.9 billion, showing a nearly $5 billion rise.
Aramco remains optimistic about the future, anticipating increased demand from the aviation industry and China. The company's CEO highlighted the strong growth in global oil demand, reaching a record 103.2 million barrels a day in the first half of 2024.
Aramco plans to pay dividends of $20.3 billion for the second quarter and a performance-linked dividend of $10.8 billion, with hopes of an overall dividend exceeding $124 billion for the year.
While a portion of Aramco trades on the Tadawul, the majority is held by the Saudi Arabian government, supporting its expenditure and benefiting the Al Saud royal family.
Saudi Arabia, a key player in the OPEC cartel, has collaborated with Russia and other non-OPEC members to limit production and boost global oil prices. Benchmark Brent crude traded around $77 a barrel amid recent market fluctuations.
Crude oil prices fluctuated during the pandemic but surged in 2022 due to geopolitical tensions, subsequently decreasing to a six-month low amidst global economic concerns.
Aramco, with a market value of $1.7 trillion, ranks as the world's fifth-most valuable firm. The company produced over 12 million barrels of oil daily in 2024 and has the capacity to add 3 million more barrels per day if necessary.
Despite criticism from activists regarding fossil fuel consumption and climate change, Aramco's financial outlook remains positive, supported by consistent oil demand and global inventory levels.
Saudi Arabia's oil wealth, coupled with plans for diversification through projects like the futuristic Neom city, reflects efforts to reduce dependency on oil revenues amidst lower oil prices and potential budget deficits.
