- Aramco’s operating profit for the second quarter was 167.09 billion riyals, missing the estimated 180.4 billion riyals and showing a 19% year-on-year decrease.
- The company reported a net profit, including minority interest, of 85.02 billion riyals.
- Total revenue for the period was 378.83 billion riyals.
- Earnings per share (EPS) came in at 0.75 riyals, exceeding the estimated 0.36 riyals.
- Aramco declared a base dividend of $21.1 billion and a performance-linked dividend of $200 million.
- Net income amounted to 85.63 billion riyals, slightly below the estimated 89.34 billion riyals, also marking a 19% decline year-on-year.
- Consistent market confidence is reflected in 12 analyst buy ratings, alongside 10 hold ratings, and no sell recommendations.
Saudi Aramco on Smartkarma
Analysts on Smartkarma, such as Suhas Reddy, have been closely monitoring Saudi Aramco’s performance and providing insightful reports. In a recent earnings review by Suhas Reddy, titled ‘Aramco’s 2024 Performance Hit by Weak Oil, Cuts 2025 Dividend by One-Third,’ it was highlighted that Aramco’s 2024 revenue and net profit experienced a decline, falling short of estimates due to weaker crude prices, higher costs, and reduced production. The report also mentioned that dividends for 2025 were set lower, with significant reductions in performance-linked incentives.
In another report by Suhas Reddy, named ‘Aramco to Face Pressure in Q4 as Weak Oil Prices Squeeze Margins,’ the analysis pointed out that Saudi Aramco is expected to experience a dip in revenue and EPS in Q4, with growth heavily reliant on oil prices amidst extended OPEC supply cuts. The report also highlighted Aramco’s strategic moves, including expanding retail presence through acquisitions and partnering with industry leaders for the development of a major CCS hub. These analyses provide valuable insights for investors following the developments of Saudi Aramco on Smartkarma.
A look at Saudi Aramco Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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 shows a promising long-term outlook. With a high score in Dividend at 5, investors can look forward to attractive dividend payouts. The company also scores well in Resilience and Momentum, indicating its ability to withstand economic challenges and maintain a positive growth trajectory.
Saudi Aramco‘s focus on hydrocarbons exploration, production, and distribution positions it well in the global market. While its Value and Growth scores are not as high, the strong performance in Dividend, Resilience, and Momentum suggests a stable and profitable future for the company. With a diversified business model and a strong presence worldwide, Saudi Aramco remains a solid choice for investors seeking reliable returns.
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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