Aramco Q1 PAT plummets 19% to $31.9 billion on lower crude prices

As per Refinitiv data, the net profit of Aramco was 3.75% higher than in the fourth quarter and above analysts’ median forecast of $30.8 billion. In line with the preceding quarter, the top oil exporter in the world will distribute $19.5 billion in dividends for the first quarter of FY24.

CEO Amin Nasser in a statement said Aramco was looking at introducing performance-linked dividends, in addition to its base distribution. The additional payouts would target 50%-70% of annual free cash flow, net of the base dividend and other amounts including external investments, it said.

“We are also moving forward with our capacity expansion, and our long-term outlook remains unchanged as we believe oil and gas will remain critical components of the global energy mix for the foreseeable future,” Nasser said.

The company’s compression projects at Haradh and Hawiyah fields are expected to begin initial production and achieve full capacity during 2023, Nasser said.

In the first quarter, Aramco signed agreements to broaden its downstream business operations internationally. These agreements included investments in China and the $2.76 billion acquisition of the products division of Valvoline Inc.

Commenting on the Q1 results A R Ramachandran, Co-founder & Trainer-Tips2trades said “Even though topline growth of Aramco beat analysts forecasts, a dip in net profit due to inflationary pressure on margins has resulted in a weak closing today for Saudi Aramco. Technically, the stock price is still overbought on the Daily charts and investors should book profits at current levels and wait for a dip near support zone of $27.5-29 to buy for better returns.”

With inputs from agencies