Prime Highlights
- Saudi Aramco posted adjusted net income of $67.2 billion for the first half of the year despite disruptions to shipping through the Strait of Hormuz.
- The company’s board declared a base dividend of $21.9 billion for the second quarter, to be paid in the third quarter.
Key Facts
- Saudi Aramco is the world’s largest oil producer, known for maintaining crude supplies through diversified infrastructure, including pipelines and export terminals.
- Aramco’s gearing ratio rose to 6.2% at the end of June from 4.8% three months earlier, reflecting shifts in its capital structure.
Background
Saudi Aramco reported a strong financial performance for the first half of the year, posting adjusted net income of $67.2 billion, as the world’s largest oil producer maintained crude supplies despite unprecedented disruptions to shipping through the Strait of Hormuz.
The company reported adjusted net income of $33.4 billion for the second quarter, while cash flow from operating activities reached $56.2 billion in the first six months of the year, including $25.4 billion in the April-June period. Free cash flow totalled $30.9 billion in the first half, including $12.3 billion in the second quarter, with the company noting that quarterly free cash flow was affected by a $13.6 billion working capital build.
Aramco’s board declared a base dividend of $21.9 billion for the second quarter, to be paid in the third quarter, underscoring its commitment to shareholder returns despite heightened geopolitical uncertainty. The results follow months of regional tensions that disrupted oil shipments through the Strait of Hormuz, a vital route for global crude exports. Aramco said it maintained production and exports by leveraging its diversified infrastructure, including the East-West Pipeline, storage facilities and export terminals.
President and chief executive Amin H. Nasser said the company’s first-half performance reflected the resilience of its people and the agility of its operations amid rapidly changing market conditions. He added that Aramco entered the second half of the year with strong financial and operational momentum, supported by a robust balance sheet and disciplined execution. The company’s gearing ratio stood at 6.2% at the end of June, up from 4.8% three months earlier.
Aramco also reported progress on major expansion projects, including the Zuluf crude oil increment project and the Jafurah and Fadhili gas plants, and said it had agreed to sell its entire equity stake in PrefChem.
