Half Year 2024 Saudi Arabian Oil Co Earnings Call Transcript
Key Points
- Saudi Arabian Oil Co (SAU:2222) continues to deliver strong operational and financial performance, with record global oil demand reaching 103.2 million barrels per day in the first half of 2024.
- The company is making significant progress in its upstream and downstream operations, including major projects in Marjan, Berri, and Zuluf, and expanding its gas production by more than 60% by 2030.
- Saudi Arabian Oil Co (SAU:2222) is advancing its new energies initiatives, including renewable capacity building, lower carbon hydrogen business, and carbon capture and storage (CCS).
- The company has successfully completed two major transactions in the equity and debt capital markets, enhancing trading liquidity and broadening its investor base.
- The Board has declared a total dividend of $31.1 billion for August, with expectations to declare $124 billion in total base and performance-linked dividends for the full year 2024.
- Downstream EBIT was down at negative $0.3 billion, mainly due to weaker refining margins.
- The company faces significant challenges in the hydrogen market, including high production and transportation costs, infrastructure development, and unclear policies.
- There is an increase in selling and general expenses, as well as purchasing costs, impacting the company's operating costs.
- The effective tax rate has shown variability, influenced by different tax brackets for various business units and specific transactions.
- The company has temporarily suspended a number of jack-up rig contracts, indicating potential adjustments in upstream investment and operational activities.
Welcome to the Saudi Aramco's half year 2024 results call. (Operator Instructions).
I should now hand over to Mr. Peter Hutton to begin. Peter, please go ahead.
Hello, and welcome to this audio webcast discussing Saudi Aramco's First Half 2024 Results. I'm Peter Hutton, Head of Investor Relations at Aramco, and I'm pleased to be joined today by Amin Nasser, President and CEO; and Ziad Al-Murshed, Executive Vice President and CFO. Our webcast today will comprise a presentation followed by a question-and-answer session, and we anticipate the entire call lasting up to an hour. I'd like to remind you that this webcast and conference call are being recorded and also draw your attention to this cautionary statement. Please also refer to our regulatory filings and website for more details.
And with that, I'll now hand over the call to Amin.
Thank you, Peter, and welcome, everyone,
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