Saudi Aramco has slashed dividend payments after profit tumbled last year in line with weaker oil prices.
Net income dropped 12.4% from $121.3 billion to $106.2 billion over the course of 2024, Saudi Aramco reported on Tuesday.
This meant profit had dropped for a second consecutive year from a record in 2022, when benchmark Brent crude oil peaked at over $100 a barrel.
Oil prices have slumped since though, in part on fears around a looming supply surplus, and were trading at under $71 a barrel as of Tuesday.
The OPEC+ cartel, of which Saudi Arabia is part, repeatedly agreed to delay production increases over the year, before agreeing to a first uplift since 2022 on Monday.
Saudi Aramco also said free cash flow slipped 15.7% from $101.2 billion to $85.3 billion in 2024, as capital expenditure climbed by 19.4% to $50.4 billion.
“The decrease was primarily driven by lower revenue and other income related to sales, higher operating costs, as well as lower finance and other income,” a statement said.
Total dividends for the year of $85.4 billion were expected, Saudi Aramco added, marking a 31.1% reduction from 2023’s $124 billion.