- Aramco’s operating profit in Q1 was 202.05 billion riyals, seeing a 9.1% decrease from the previous year. This missed the estimated 205.18 billion riyals.
- Net profit including minority interest was 102.27 billion riyals, marking a 14% reduction year over year.
- The revenue was 402.04 billion riyals, marking a 3.7% decrease year over year.
- The company declared a base dividend of $20.3 billion and a performance-linked dividend of $10.8 billion, totalling a dividend of $31.07 billion.
- The free cash flow was $22.76 billion, which is a 26% reduction from the previous year.
- The capital expenditure was $10.83 billion, signifying a 25% increase year over year.
- The average realized price of crude oil per barrel was $83.00, indicating a rise of 2.5% year over year. This surpassed the estimated value of $81.74.
- Earnings per share were 0.43 riyals, slightly less than the 0.49 riyals from the previous year but it outdid the estimated 0.42 riyals.
- Aramco expects a total dividend of $124.3 billion in 2024.
- The company declares that dividend payments resulted in a drop in cash.
- The total venture capital funding is expected to increase to $7.5 billion.
- Aramco made significant progress in expanding its gas business.
- As for recommendations, Aramco has two “buy” ratings, 13 “hold” ratings, and one “sell” rating.
Saudi Aramco on Smartkarma
Analysts on Smartkarma are closely following the developments around Saudi Aramco, with a focus on its strategic partnerships and investments. According to a report by Caixin Global, Saudi Aramco and its Chinese partner Rongsheng Petrochemical Co. Ltd. have decided to strengthen their ties by acquiring stakes in each other’s subsidiaries. Rongsheng plans to purchase a 50% stake in Saudi Aramco‘s refining unit, while Saudi Aramco intends to invest in Rongsheng’s petrochemical subsidiary. This move underscores the deepening collaboration between the two companies in the energy sector.
In another report by Caixin Global, it is highlighted that Saudi Aramco is increasing its investments in refining and petrochemical facilities in China to maximize returns in a transitioning energy landscape. The company’s Senior Vice President emphasized the importance of partnerships in China for fueling growth and innovation in the refining and petrochemical sectors. This strategic focus on expanding operations in China aligns with Aramco’s vision of adapting to a low-carbon economy while capitalizing on the country’s pivotal role in the global energy market.
A look at Saudi Aramco Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead, Saudi Aramco‘s long-term outlook seems promising based on its Smartkarma Smart Scores. With a strong focus on providing consistent dividends to shareholders, the company has been awarded a high score of 5 in the Dividend category. Additionally, Saudi Aramco scores well in Growth and Resilience with scores of 4, indicating positive indicators for future expansion and the ability to navigate challenging market conditions. Despite a slightly lower score in Momentum at 2, the overall outlook remains positive, especially considering the company’s solid performance in Value.
As Saudi Aramco, also known as Saudi Arabian Oil Co., continues to operate as a key player in the oil exploration industry, its diverse range of services from exploration to shipping, along with crude oil marketing services, position it well in the global market. The company’s strategic focus on maintaining robust dividends, coupled with its growth potential and resilience, bode well for its future prospects, reinforcing its standing as a leading oil exploration company serving customers worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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