Saudi Arabian Oil Company (2222) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 reached $27.6 billion, down from $32.6 billion in Q3 2023, but in line with analyst consensus despite non-cash charges of approximately $0.9 billion.

• Maintained industry-leading operational and financial performance, with ROACE at 20.8% and gearing at 1.9%.

• Strong operational performance supported robust free cash flow and continued investment in strategic growth, renewables, and diversification.

• Declared $20.3 billion base dividend and $10.8 billion performance-linked dividend for Q3, both payable in Q4 2024.

• Issued $6 billion in conventional bonds and $3 billion in international sukuk, both six times oversubscribed, enhancing liquidity.

Financial highlights

• Q3 2024 net income: $27.6 billion; adjusted net income down 2% from Q2, outperforming peers' 8% decline.

• Free cash flow rose to $22.0 billion, up from $20.3 billion in Q3 2023, despite higher CapEx and lower oil prices.

• Capital expenditures totaled $13.2 billion in Q3, supporting long-term growth and strategic projects.

• Revenue for Q3 2024 was SAR 464.6 billion ($124.4 billion), down from SAR 488.9 billion ($130.4 billion) in Q3 2023.

• EBIT for Q3 2024 was $51.4 billion, down from $62.3 billion in Q3 2023.

Outlook and guidance

• 2024 capital investment guidance narrowed to $51–$54 billion, with 2025 CapEx expected to be slightly higher as projects peak mid-decade.

• Liquids and gas projects remain on track, with Jafurah phase 1 and Tanajib Gas Plant expected online by 2025.

• Targeting 12 GW renewable capacity and up to 11 mmtpa blue ammonia production by 2030.

• Anticipates continued strong global oil demand, with Asia accounting for around 60% of growth.

• Focus remains on strategic growth, integration, and diversification to maintain positive momentum.