Saudi Arabian Oil Co

2222: XSAU (SAU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SAR 11.40	Njbk	Tmxwzkpr

Aramco Earnings: Payouts Boosted Despite Falling Profits

Allen Good

May 8, 2024

Saudi Aramco’s first-quarter net income fell to $27.3 billion from $31.9 billion the year before largely on lower volumes and weaker refining and chemical margins. Total hydrocarbon volumes decreased to 12.4 million barrels of oil equivalent per day from 12.8 mmboe/d last year. Free cash flow decreased to $22.8 billion in the quarter from $30.9 billion in the prior year while net debt rose to negative $16.7 billion from net debt of negative $27.4 billion at end-2023, implying a gearing ratio of negative 3.8%. We maintain our fair value estimate of SAR 30.00 and wide moat rating for Aramco.

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