Saudi Arabian Oil Company (2222) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $27.6 billion, down from $32.6 billion in Q3 2023, but in line with analyst consensus despite $0.9 billion in non-cash charges.

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

• Strong free cash flow and continued investment in strategic growth, including upstream, renewables, and hydrogen.

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

• Successful $3 billion sukuk and $6 billion bond issuances, both heavily oversubscribed, enhanced liquidity and diversified investor base.

Financial highlights

• Q3 2024 net income was $27.6 billion, with free cash flow rising to $22.0 billion, up 15.8% quarter-on-quarter.

• ROACE stood at 20.8% for the 12 months ended September 30, 2024.

• Gearing ratio increased to 1.9%, remaining the lowest among peers.

• Upstream EBIT was $52.8 billion; Downstream EBIT was -$1.8 billion due to weak refining and chemical margins and non-cash charges.

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

Outlook and guidance

• 2024 capital investment guidance narrowed to $51–$54 billion, with 2025 CapEx expected to be slightly higher as project spending peaks.

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

• Liquids and gas projects, including Jafurah phase 1 and Tanajib Gas Plant, remain on track for 2025; targeting 12GW renewables and up to 11 mmtpa blue ammonia by 2030.

• Dividend framework remains resilient, with base and performance-linked dividends declared for Q3.