Saudi Aramco Reports Lower Profits and Revenues for 2024

Saudi Aramco's financial report reveals lower profits and revenues for fiscal 2024. The decrease in net income and EPS indicates potential pressure on stock prices, while a planned dividend increase suggests ongoing shareholder commitment.

Date: 04-03-2025

AI Rating: 4

Lower Profit and Revenues: Saudi Aramco's recent report discloses a significant decline in net income, which fell to $105.04 billion from $120.73 billion the prior year. This 12.5% drop can lead to concerns among investors about the company's profitability and overall financial health.

Earnings Per Share (EPS): The report states that earnings per share decreased from $0.50 to $0.43. The decline in EPS, a crucial metric for assessing the company's profitability on a per-share basis, may negatively affect investor sentiment, as lower EPS can suggest reduced shareholder value.

Revenue Growth: Revenue and other income related to sales also fell significantly to $480.45 billion from $495.03 billion, reflecting a year-over-year decline. This drop in revenue signifies a contraction in business activity, which may adversely impact stock performance.

Dividends: On a positive note, the company declared a base dividend of $21.1 billion, which represents a 4.2% year-over-year increase, and it plans to maintain strong capital return to shareholders. This may provide some reassurance to investors, indicating the company's commitment to rewarding its shareholders despite declining profits.

Future Expectations: Looking ahead, Aramco expresses optimism regarding its growth strategy across Upstream and Downstream operations, anticipating additional cash flows from these sectors. This potential for growth could help mitigate the effects of current declines, providing some hope for future stock price recovery.

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