Aramco has announced its first quarter results of 2024 (Q1 2024), reporting net income of $27.3 billion, slightly lower than Q1 2023 that was $31.9 billion. This was primarily due lower oil prices and volumes sold.

The company’s cash flow from operating activities stood at $33.6 billion, with free cash flow at $22.8 billion.

Notably, the Saudi government in late January ordered Aramco to scrap its expansion plan to boost production capacity to 13 million barrels a day (mmbbl/d), returning to the previous 12 mbpd target.

Two projects that were part of the expansion plan – Safaniyah and Manifa – are now on hold, while three others are ongoing.

Marjan and Berri were expected to come onstream in 2025 adding 300,000 barrels per day (bbl/d) and 250,000 bbl/d respectively while Zuluf was on track to add 600,000 bbl/d by 2026, Aramco said.

Besides during the first quarter, the Company paid a 2023 fourth quarter base dividend of $20.3 billion, an increase of 4.0% compared to the previous quarter. In addition, the Company paid the third performance-linked dividend distribution of $10.8 billion, representing a 9.0% increase from the previous quarter. These dividends payments, totaling $31.1 billion, resulted in a decrease in cash and cash equivalents and a corresponding reduction in shareholders’ equity in the consolidated balance sheet and statement of changes in equity.

The company expects to declare total dividends of $124.3 billion for 2024, including a base dividend of $81.2 billion and a performance-linked dividend of $43.1 billion.

“Our first-quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries and to people worldwide,” said Aramco President & CEO Amin H. Nasser.

“We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders,” Nasser continued.

Aramco’s upstream operations in 1Q 2024 achieved total hydrocarbon production of 12.4 million barrels of oil equivalent per day (mmboed),

Key developments in the upstream segment during the quarter included construction activities for the Dammam development project, Marjan and Berri crude oil increments, and the Zuluf crude oil increment.

Additionally, Aramco announced the addition of 15 tscf of raw gas and two billion stock tank barrels of condensate as proven reserves at the Jafurah unconventional field.

Meanwhile, Aramco’s downstream business continued to enhance its global presence during the quarter by expanding its operations in key high-growth geographies, positioning itself to meet anticipated demand for petrochemical products, and growing its global brand presence.

Key downstream developments included a ceremony for the SABIC Fujian Petrochemical Complex in China and the acquisition of a 100% equity stake in Esmax, a leading downstream fuels and lubricants retailer in Chile.

Aramco aims to double its venture capital funding to $7.5 billion to finance new technologies in digital and sustainability sectors.

“Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognizes the need for affordable, reliable, and flexible energy supplies,” said Nasser.

Aramco aims to increase its use of renewable energy sources and invest in up to 12 GW of solar PV and wind projects by 2030.

In January 2024, the Sudair Solar PV Plant, one of the largest solar plants in the region with a capacity of 1.5 GW, reached full capacity operation.

Besides its focus on renewables, Aramco is actively involved in developing and implementing technologies to reduce its carbon footprint.

The company has made progress in the design, procurement, and construction activities at the Jafurah Gas Plant, which is part of the Jafurah unconventional gas field development. This project is expected to commence production in 2025 and gradually increase natural gas deliveries to reach a sustainable rate of 2.0 bscf/d by 2030.

Aramco has also continued construction and procurement activities at the Tanajib Gas Plant, part of the Marjan development program, and awarded engineering, procurement, and construction contracts for the expansion of the Fadhili Gas Plant.