Saudi Arabian Oil Co
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
SAR 97.70 | Qjvqx | Cgyptcxb |
Aramco Earnings: Payouts Boosted Despite Falling Profits
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.