Aramco Q2 Net Income $29.03B Exceeds Estimates

Aramco posted second-quarter net income of $29.03 billion in the three months to June 30, beating a company-provided median estimate from 15 analysts of $27.7 billion.

Oil giant Saudi Aramco reported a 3.4% fall in second-quarter profit on lower crude volumes and softer refining margins.

Dividends of $31.1 billion were declared for the second quarter, including $10.8 billion in performance-linked payouts. Aramco introduced the performance-linked dividends last year, on top of a base dividend that is paid regardless of results, an uncommon practice among listed companies.

Aramco said it expects $124.2 billion in total dividends in 2024, roughly in line with previous guidance of $124.3 billion.

The Saudi government directly holds nearly 81.5% of Aramco and relies heavily on the company's payouts, which include royalties and taxes. Saudi's sovereign wealth fund PIF holds another 16% of Aramco and also benefits from its dividends.

Aramco's capital expenditure in the second quarter rose nearly 14% year-on-year to $12.1 billion, partly due to investments to maintain crude maximum sustainable capacity at 12 million barrels per day and expansion of its gas business.

"Aramco remains confident in its forecasts for medium- and long-term demand growth, and the company continues to execute its growth strategy," it said in a statement.

Saudi Arabia is pumping roughly 9 million barrels per day, about three-quarters of its capacity. It has made cuts along with other OPEC members and allies, including Russia, which is known as OPEC.

OPEC has been cutting output by a total of 5.86 million barrels per day, or about 5.7% of global demand.