Saudi Arabian Oil Company (2222) Q2 2024 earnings summary

Executive summary

• Net income reached $29.1 billion for Q2 2024 and $56.3 billion for H1 2024, reflecting strong earnings and cash flows despite lower crude volumes and refining margins year-over-year.

• Cash flow from operations was $31.1 billion in Q2 and $64.7 billion in H1 2024; free cash flow totaled $19.0 billion in Q2 and $41.7 billion in H1 2024.

• Achieved strong profitability and cash flow in H1 2024, supported by operational excellence, record global oil demand, and robust execution of growth strategy.

• Strategic milestones included a secondary public offering, a $6.0 billion bond issuance, and major acquisitions and partnerships, expanding the international investor base and free float.

• Advanced key projects in upstream, downstream, and new energies, including gas expansion, renewables, and hydrogen initiatives.

Financial highlights

• Q2 2024 net income was $29.1 billion, up 6.6% sequentially but down from $30.1 billion in Q2 2023; H1 2024 net income was $56.3 billion, down from $62.0 billion in H1 2023.

• Free cash flow for Q2 was $19.0 billion; H1 2024 free cash flow was $41.7 billion, both down from 2023.

• Dividends declared for Q2 2024 were $31.1 billion, with total 2024 dividends expected to reach $124.2 billion.

• Upstream EBIT for H1 2024 was $110.5 billion, slightly down from $114.1 billion in H1 2023; downstream EBIT was $1.0 billion, down from $4.2 billion in H1 2023.

• Average realized crude oil price was $85.7 per barrel in Q2 2024, up from $79.9 per barrel in Q2 2023.

Outlook and guidance

• Total dividends for 2024 are expected to reach $124.2 billion, subject to board approval and financial position.

• Global oil demand expected to grow further in H2 2024 and beyond, with forecasts of 104.6–106.2 million barrels per day and inventories at the lower end of the five-year range.

• Capital investment guidance for 2024 remains at $48–$58 billion, with an update expected in Q3.

• Sales gas production targeted to grow by more than 60% by 2030 compared to 2021 levels.