- Aramco’s operating profit for the first quarter was 191.36 billion riyals, surpassing market estimates of 188.95 billion riyals, but showing a 5.3% decrease compared to the previous year.
- The company’s net profit, including minority interest, was 97.54 billion riyals, down 4.6% year-over-year.
- Revenue for the quarter increased slightly by 0.9% year-over-year, reaching 405.65 billion riyals.
- Aramco’s earnings per share (EPS) were 0.4 riyals, slightly below the previous year’s 0.43 riyals, but higher than the market estimate of 0.39 riyals.
- Free cash flow declined 16% year-over-year to $19.2 billion.
- A base dividend of $21.1 billion was declared, along with a performance-linked dividend of $200 million.
- Total revenue came in at 429.61 billion riyals, outperforming the estimated 409.74 billion riyals.
- Market analysts show mixed sentiment towards Aramco with 12 buy recommendations, 8 holds, and 1 sell rating.
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Saudi Aramco on Smartkarma
Analysts on Smartkarma, like Suhas Reddy, have been closely monitoring Saudi Aramco‘s performance. In a recent earnings review, it was highlighted that Aramco’s 2024 revenue and net profit decreased due to weaker crude prices, higher costs, and reduced production. The company also announced a 31.1% decrease in dividends for 2025, with sharp cuts in incentives. On the other hand, in an earnings preview, it was noted that Aramco was expected to face pressure in Q4 as weak oil prices squeeze margins. The outlook for revenue and EPS in Q4 was mixed, with growth heavily reliant on oil prices amidst OPEC’s supply cuts extension.
A look at Saudi Aramco Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Saudi Aramco is positioned with a favorable long-term outlook. With a high score in Dividend, investors can expect a stable and attractive dividend yield from the company. This indicates a consistent track record of dividend payments and potential for income generation for shareholders. Additionally, Saudi Aramco demonstrates strong Resilience, reflecting its ability to weather market fluctuations and potentially navigate challenging economic conditions effectively. Although the company’s Value and Growth scores are moderate, the overall outlook remains positive due to the solid scores in Dividend and Resilience.
Saudi Aramco, known as Saudi Arabian Oil Co., operates as a global oil exploration company, focusing on various aspects of the hydrocarbons industry. From exploration to refining and distribution, the company provides comprehensive services in the oil sector, including crude oil marketing on a worldwide scale. With a balanced mix of scores across different factors, Saudi Aramco presents itself as a reliable player in the industry, offering investors a robust dividend yield and showcasing resilience in the face of market challenges.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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