In This Article:
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Net Income: $106.2 billion for 2024, down 12% from 2023.
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Free Cash Flow: $85 billion for the full year 2024.
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Return on Average Capital Employed (ROACE): 20.2% for the 12-month rolling period.
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Upstream EBIT: $213.6 billion for 2024.
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Downstream EBIT: Negative $2.9 billion for 2024.
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Operating Cash Flow: $135.7 billion for 2024.
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Capital Investments: $53.3 billion for 2024.
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Gearing: 4.5% at the end of 2024.
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Quarterly Net Income (Q4): $22.3 billion.
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Quarterly Operating Cash Flow (Q4): $35.8 billion.
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Quarterly Free Cash Flow (Q4): $21.6 billion.
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Base Dividend Increase: 4.2% increase to $21.1 billion quarterly, projecting $84.6 billion annually.
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Performance-Linked Dividend: $220 million for Q4 2024, projecting $880 million annually for 2025.
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Total Expected Dividend Distributions for 2025: $85.4 billion.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Saudi Arabian Oil Co (SAU:2222) reported a strong net income of $106 billion for 2024, showcasing resilience despite market volatilities.
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The company increased its base dividend by 4.2%, demonstrating a commitment to delivering shareholder value.
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Saudi Arabian Oil Co (SAU:2222) has a low gearing ratio of 4.5%, indicating a strong balance sheet and financial stability.
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The company is expanding its gas production capacity significantly, with a target to increase sales gas production by over 60% by 2030.
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Saudi Arabian Oil Co (SAU:2222) is leveraging AI and digital technologies to optimize operations, resulting in the lowest lifting cost of $3.5 per barrel among peers.
Negative Points
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Net income for 2024 was down by 12% compared to 2023, reflecting challenges in maintaining previous profit levels.
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The downstream EBIT was negative $2.9 billion due to weak margins and noncash items, indicating struggles in this segment.
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The company faces geopolitical uncertainties and volatility, which could impact future operations and profitability.
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There is a delay in the blue ammonia project, with targets revised to 2030 due to challenges in securing offtake agreements.
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Saudi Arabian Oil Co (SAU:2222) has significant assets under construction, impacting the current return on average capital employed.
Q & A Highlights
Q: What will be the main spending areas for CapEx into 2025, and will this include the beginning of Jafurah Phase 2? Also, can you explain the non-cash one-off expense in Q4? A: The CapEx guidance is $52 billion to $58 billion, with a focus on upstream (30%), downstream (50%), and new energy (10%). Jafurah Phase 2 has already started, with spending underway, and is on track for full capacity by 2030. The non-cash charges were about $1.7 billion, mainly impairment charges related to some downstream facilities, following a strict assessment process in line with IFRS.