Aramco has reported a net income of 109.01 billion riyals ($29.03 billion) in the three months to June 30, beating a company-provided median estimate from 15 analysts of $27.7 billion.

Meanwhile, the quarter’s profit is 3.4% short of the same period last year due to lower crude volumes and softer refining margins, according to Reuters.

The company reported dividends of $31.1 billion for the Q2, including $10.8 billion in performance-linked payouts. It expects $124.2 billion in total dividends in 2024, roughly in line with previous guidance of $124.3 billion.

Notably, the Saudi government directly holds nearly 81.5% of Aramco and relies heavily on the company’s payouts, which include royalties and taxes. Saudi’s sovereign wealth fund PIF holds another 16% of Aramco and also benefits from its dividends.

Aramco’s capital expenditure in the second quarter rose nearly 14% year-on-year to $12.1 billion, partly due to investments to maintain crude maximum sustainable capacity at 12 million barrels per day (bbl/d) and expansion of its gas business.

The company stated on Tuesday that it remains optimistic about medium- and long-term demand growth and is committed to its growth strategy.

Saudi Arabia is roughly producing around 9 million barrels per day, utilizing three-quarters of its capacity, and has implemented production cuts alongside other OPEC+ members to stabilize the market.

Global economic growth concerns have pushed Brent crude prices down to their lowest since January, affecting Aramco’s share performance, which is down nearly 19% year-to-date. Lower output and prices have also impacted Saudi state finances, leading to a second-quarter deficit.

To address financing needs, the government sold additional Aramco shares earlier this year, raising $12.35 billion. It has also been one of the most active emerging market debt issuers, raising $17 billion from eurbond sales.