American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Saudi Aramco Q3 profit drops 15.4% amid lower oil prices

by admin November 5, 2024
November 5, 2024
Saudi Aramco Q3 profit drops 15.4% amid lower oil prices

Saudi Arabia’s state-owned oil giant Aramco reported a 15.4% decline in third-quarter profit, driven by lower crude prices and weaker refining margins.

Despite the income reduction, Aramco maintained its quarterly dividend at $31.1 billion, aligning with the company’s strategy to provide consistent payouts amid fluctuating market conditions.

This quarter’s dividend includes $10.8 billion in performance-linked payments, underscoring Aramco’s approach to rewarding investors while navigating volatile oil markets.

Here’s an analysis of Aramco’s latest performance, its significant role in Saudi Arabia’s economy, and what these results mean for the global oil market.

Aramco’s Q3 net income beats forecasts despite weaker oil market

Aramco posted a net income of $27.6 billion for the quarter ending Sept. 30, surpassing the company-provided median estimate of $26.9 billion and Citi’s forecast of $26.3 billion.

This figure, although lower than previous quarters, demonstrates Aramco’s resilience amid a global slowdown in oil prices.

The performance-linked dividends, introduced last year, aim to enhance investor returns during profitable periods, supplementing the base dividend that remains consistent regardless of earnings.

The company’s dividend structure, combining a base payout and performance-linked component, has positioned Aramco as a stable source of income for investors and the Saudi government.

This quarter’s dividend included a significant $10.8 billion in performance-based payouts.

Aramco expects to declare total dividends of $124.3 billion in 2024, including $43.1 billion in performance-linked dividends, which signals continued shareholder benefits, even amid economic adjustments.

Saudi government and Public Investment Fund heavily reliant on Aramco payouts

The Saudi government directly owns nearly 81.5% of Aramco, and the sovereign Public Investment Fund (PIF) holds another 16% stake.

These dividends are a cornerstone of funding for Saudi Arabia’s Vision 2030, an ambitious economic diversification agenda aimed at reducing dependence on oil revenues.

The PIF, managing an estimated $925 billion, has redirected funds into a range of sectors, from high-tech infrastructure to electric vehicles, as part of the kingdom’s vision for a more diversified economy.

The PIF is instrumental in realising Saudi Arabia’s Vision 2030, with a focus on transforming the country’s economic landscape.

Financial adjustments have been noted as the country’s Finance Minister hinted that Vision 2030 might undergo “adjustments as needed,” which could involve prioritising specific projects and extending timelines for others.

Such recalibrations reflect an evolving approach in response to fiscal demands and market conditions.

OPEC production cuts influence Saudi oil output

As the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia is currently producing approximately 9 million barrels of oil per day, representing about 75% of its full capacity.

This production level results from agreed cuts with OPEC members and allies, including Russia, to help stabilise global oil prices.

These production strategies underscore Saudi Arabia’s commitment to balancing global supply and demand while supporting oil prices.

Looking forward, Aramco’s financial strategies will likely remain integral to Saudi Arabia’s economy, as the company continues to support the government’s expansive economic agenda.

With oil markets under pressure, the company’s performance-linked dividend structure could offer greater flexibility in maintaining investor returns without compromising stability.

Aramco’s influence on global oil markets and its dividends remain pivotal, not just for Saudi Arabia, but for broader economic stability across oil-dependent economies.

The post Saudi Aramco Q3 profit drops 15.4% amid lower oil prices appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
What’s next for Boeing’s production and finances as workers end seven-week strike?
next post
Airbnb stock sits and waits for earnings: buy or sell?

Related Posts

Americans who moved abroad say this big expense...

August 8, 2024

What makes iDEGEN an exciting meme coin to...

December 27, 2024

Tesla to recall 125,227 vehicles over faulty seat...

June 2, 2024

Why Chinese stocks could outperform US markets under...

March 4, 2025

Trump says TikTok deal ‘coming soon’: a look...

March 12, 2025

UK retailers warn of price hikes in 2025...

January 9, 2025

Dow tumbles 475 points, S&P 500 suffers worst...

April 14, 2024

France’s €109 billion AI investment: Can it compete...

February 10, 2025

Redbox set to close as DVD market withers...

July 14, 2024

Paramount and Skydance inch closer to a merger...

May 1, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved