Saudi Aramco expects to declare dividends totalling $85.4 billion in 2025, a nearly 30% drop from the $124.25 billion distributed in 2024. The announcement comes after a 12% drop in net profit for 2024, with earnings falling to $106.2 billion from $121.3 billion in 2023, primarily due to lower revenue and increased operating costs.
The company’s 2024 dividends included approximately $43.1 billion in performance-linked payouts, a mechanism introduced in 2023. However, for the first quarter of 2025, Aramco declared just $200 million in performance-linked dividends, a significant decrease from the nearly $10.8 billion allocated for each quarter in 2024.
Aramco’s revenue declined to $436.6 billion in 2024 from $440.8 billion the previous year. The average realised oil price dropped to $80.2 per barrel in 2024, down from $83.6 in 2023.
Despite these challenges, Aramco plans capital investments between $52 billion and $58 billion in 2025, following investments of $53.3 billion in 2024.
The Saudi government directly owns 81.5% of Aramco, with the Public Investment Fund holding an additional 16%. The reduced dividends may impact the kingdom’s fiscal budget, as Aramco’s payouts have historically played a significant role in funding government initiatives, Reuters reported.
Aramco’s CEO, Amin Nasser, expressed optimism about future demand, stating, “Global oil demand reached new highs in 2024, and we expect further growth in 2025.”
The company also highlighted its spare production capacity, indicating that utilising an additional one million barrels per day could generate approximately $12 billion in operating cash flow, based on 2024’s average prices.
