{"id":112465,"date":"2025-03-04T15:37:04","date_gmt":"2025-03-04T11:37:04","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=112465"},"modified":"2025-03-04T15:37:08","modified_gmt":"2025-03-04T11:37:08","slug":"saudi-aramco-forecasts-lower-dividends-in-2025-amid-declining-profits","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/saudi-aramco-forecasts-lower-dividends-in-2025-amid-declining-profits\/03\/04\/market-updates\/","title":{"rendered":"Saudi Aramco Forecasts Lower Dividends in 2025 Amid Declining Profits"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><\/h3>\n\n\n\n<p>Saudi Aramco (TADAWUL:2222), the world\u2019s largest oil company, announced on <strong>Tuesday<\/strong> that it expects to declare <strong>$85.4 billion in total dividends in 2025<\/strong>, a notable decrease from the <strong>$124.25 billion distributed in 2024<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Financial Performance: Declining Profitability in 2024<\/strong><\/h3>\n\n\n\n<p>The oil giant <strong>reported a 12.4% drop in full-year 2024 net income<\/strong>, which fell to <strong>$106.2 billion<\/strong> from <strong>$121.3 billion in 2023<\/strong>. The decline reflects <strong>lower oil prices<\/strong> and <strong>higher capital expenditures<\/strong> amid ongoing global economic uncertainties.<\/p>\n\n\n\n<p>Other key financial metrics also weakened:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cash flow from operations<\/strong> dropped to <strong>$135.7 billion<\/strong> (from <strong>$143.4 billion<\/strong> in 2023).<\/li>\n\n\n\n<li><strong>Free cash flow<\/strong> fell to <strong>$85.3 billion<\/strong> (from <strong>$101.2 billion<\/strong> in 2023).<\/li>\n\n\n\n<li><strong>Gearing ratio<\/strong> (debt-to-equity) rose to <strong>4.5%<\/strong> at the end of 2024, compared to <strong>-6.3%<\/strong> a year earlier, indicating a shift from a net cash position to <strong>higher leverage<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend &amp; Capital Expenditure Strategy<\/strong><\/h3>\n\n\n\n<p>Despite lower overall dividends for 2025, <strong>Aramco\u2019s board declared a Q4 base dividend of $21.1 billion<\/strong>, marking a <strong>4.2% year-over-year increase<\/strong>. Additionally, the company <strong>approved a performance-linked dividend of $0.2 billion<\/strong>, both set to be paid in <strong>Q1 2025<\/strong>.<\/p>\n\n\n\n<p>Aramco\u2019s <strong>capital investment for 2024<\/strong> totaled <strong>$53.3 billion<\/strong>, with <strong>$50.4 billion allocated to organic capital expenditure<\/strong>. The company provided <strong>2025 capital investment guidance<\/strong> of <strong>$52.0 billion to $58.0 billion<\/strong>, excluding <strong>$4.0 billion in project financing<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Oil Market Outlook &amp; Spare Capacity Utilization<\/strong><\/h3>\n\n\n\n<p>Aramco noted that <strong>global oil demand reached new highs in 2024<\/strong> and expects further <strong>growth in 2025<\/strong>. The company emphasized its ability to <strong>utilize one million barrels per day (bpd) of existing spare capacity<\/strong>, which could generate an additional <strong>$12.0 billion in operating cash flow<\/strong>, assuming <strong>2024\u2019s average oil prices<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion: Navigating Market Volatility<\/strong><\/h3>\n\n\n\n<p>While Aramco remains a <strong>financial powerhouse<\/strong>, the company faces <strong>lower profitability, reduced free cash flow, and rising debt levels<\/strong>. However, its <strong>strong dividend payouts, strategic capital investments, and ability to leverage spare capacity<\/strong> suggest it remains well-positioned to navigate <strong>oil market volatility in 2025<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Saudi Aramco (TADAWUL:2222), the world\u2019s largest oil company, announced on Tuesday that it expects to declare $85.4 billion in total dividends in 2025, a notable decrease from the $124.25 billion distributed in 2024. Financial Performance: Declining Profitability in 2024 The oil giant reported a 12.4% drop in full-year 2024 net income, which fell to $106.2 &hellip;<\/p>\n","protected":false},"author":9,"featured_media":44462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[6962,8159,7349,8283],"class_list":["post-112465","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-aramco","tag-crude-oil-prices","tag-profits","tag-saudi-oil"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/112465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=112465"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/112465\/revisions"}],"predecessor-version":[{"id":112466,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/112465\/revisions\/112466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/44462"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=112465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=112465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=112465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}