Saudi Arabian Oil Company (2222) Q4 2024 earnings summary

Executive summary

• Net income for 2024 was $106.2 billion, down 12% year-over-year but outperforming peers, with free cash flow at $85.3 billion and operating cash flow at $135.7 billion.

• ROACE reached 20.2%, leading industry peers, and gearing was 4.5%, the lowest among competitors.

• Q4 base dividend was $21.1 billion, up 4.2% year-over-year, with performance-linked dividends at the top end of the payout range.

• Maintained industry-leading reliability at 99.7% and advanced major upstream and downstream projects.

• Technology leadership extended with large-scale AI and digitalization, capturing up to $6 billion in value over two years.

Financial highlights

• Upstream EBIT was $213.6 billion, while downstream EBIT was negative $2.9 billion due to weak margins and non-cash items.

• Q4 net income was $22.3 billion, including $2 billion in non-cash items; adjusted net income would have been $24 billion.

• Capital investments totaled $53.3 billion for the year, within guidance.

• Operating cash flow was $135.7 billion, and free cash flow was $85.3 billion.

• Realized oil price averaged $80.2 per barrel in 2024.

Outlook and guidance

• Capital investment guidance for 2025 is $52–$58 billion, excluding $4 billion in project financing.

• Total dividend distributions projected at $85.4 billion in 2025, including $84.6 billion base and $880 million performance-linked.

• Growth in capital investments expected until mid-decade, with spare crude capacity and gas expansion by 2030.

• Global oil demand expected to grow further in 2025, driven by Asia and transport fuels.

• Downstream portfolio expected to deliver $8–$10 billion incremental operating cash flow by 2030.