Saudi Aramco (Saudi Exchange ticker: 2222) is unlike any other listed company in the world. With a market capitalisation that has surpassed $2 trillion and a dividend programme that rivals the GDP of many nations, it is the cornerstone of both the Tadawul All Share Index and Saudi Arabia's Vision 2030 economic transformation plan.
But 2024 brought challenges. Softer global oil prices, OPEC+ production restraints, and rising capital expenditure all weighed on the bottom line. Here is a data-driven look at where Aramco stands.
Key Financial Metrics (FY2024)
| Metric | FY2024 | FY2023 | FY2022 |
|---|---|---|---|
| Revenue (SAR) | 1,239B | 1,102B | 1,540B |
| Net Income (SAR) | 328B | 412B | 604B |
| EPS (SAR) | 2.64 | 3.31 | 4.86 |
| Total Assets (SAR) | 2,891B | 2,654B | 2,441B |
| Dividend Yield | 3.8% | 4.2% | 3.1% |
Revenue rose 12% year-on-year in FY2024, but net income fell sharply — down 20% from FY2023 — as higher production volumes were offset by lower average oil realisations and increased production costs. The net profit margin compressed from 37.4% to 26.5%, the lowest since the company's 2019 IPO.
Dividend: The Core Investment Thesis
Aramco's dividend programme is the primary reason most investors hold the stock. The company pays a base dividend plus a performance-linked dividend tied to free cash flow.
- Base dividend per share (2024): SAR 0.416 per quarter (SAR 1.664 annualised)
- Performance-linked dividend (H2 2024): SAR 0.117 per share
- Total 2024 dividends paid: Over SAR 600 billion — among the largest corporate dividend payouts globally
- Dividend yield at current prices: ~3.8%
- Payout commitment: Base dividend locked in through 2025 per management guidance (Annual Report 2024, p.48)
ℹ️ Note
Saudi Arabia's Public Investment Fund (PIF) and the government combined own approximately 98.5% of Aramco. The dividend programme is in large part a mechanism for funding Vision 2030 initiatives through the state.
Production & Capacity
Aramco produced an average of 12.1 million barrels of oil equivalent per day (mboepd) in FY2024. The company has maintained its Maximum Sustainable Capacity (MSC) at 12 million barrels per day (mbpd) after abandoning a planned expansion to 13 mbpd in early 2024 — a decision that surprised markets.
- Crude oil production: 9.2 mbpd (within OPEC+ quota)
- Natural gas: 10.3 billion standard cubic feet per day
- Downstream capacity: 10+ mbpd through domestic and international refining
- Capital expenditure (FY2024): SAR 175 billion — focused on gas development and downstream expansion
Key Risks to Watch
Oil Price Sensitivity
Aramco's revenue and free cash flow are directly correlated with Brent crude prices. Management estimates that every $1/barrel move in oil price impacts free cash flow by approximately SAR 4 billion annually (Annual Report 2024, p.67). With Brent averaging $82/bbl in 2024, sustained prices below $70 would put the base dividend under significant pressure.
Related Party Transactions
Aramco conducts significant transactions with the Saudi government and affiliated entities, including pipeline asset sales to SABIC, feedstock supply agreements, and service contracts. These are disclosed in the Annual Report 2024 (p.142) but represent a governance consideration for international institutional investors.
Energy Transition Risk
The long-term shift towards electric vehicles and renewable energy represents a structural headwind for oil demand. Aramco's response has been to invest aggressively in chemicals (turning oil-to-chemicals), gas (lower-carbon than oil), and carbon capture technologies.
Vision 2030 Alignment
Aramco is integral to Saudi Arabia's Vision 2030 plan. The company is the primary funding vehicle for PIF investments, supports local manufacturing through IKTVA (In-Kingdom Total Value Add) targets, and is spearheading Saudi Arabia's ambition to become a global chemicals hub through its acquisition of SABIC and downstream expansion at Jubail and Yanbu.
Valuation
At a P/E ratio of 14.2x (FY2024 earnings), Aramco trades at a significant premium to Western oil majors like ExxonMobil (11x) and BP (7x), reflecting its lower geopolitical risk profile within Saudi Arabia, its unparalleled reserve quality, and the perceived stability of the dividend programme.
💡 Tip
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Investor Checklist for 2025
- Monitor Brent crude price: Below $70 is the threshold where dividend sustainability questions intensify
- Watch OPEC+ production cut decisions: Any sustained increase in quota would boost volumes
- Track Q1 2025 results (expected March 2025) for margin recovery signals
- Check performance-linked dividend announcement in H1 2025
- Review the chemicals expansion milestones at Jubail (Annual Report 2025, expected Q2)