The world’s most profitable company, Saudi Aramco, is all set to pay out $124.2 billion in dividends in 2024. Oil demand is surging around the globe, leading to investors flocking to the giant. Aramco’s dividends have been growing around 30% annually, putting the oil giant on the track for a massive payout.
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“We continue to be surprised on the upside in terms of demand. It’s a robust demand. We see it from all markets in spite of what’s happening in the (energy) transition,” said Amin Nasser, the chief executive of the world’s largest oil company. Saudi Aramco will begin rewarding investors with dividends before the end of the year.
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Saudi Aramco Becomes ‘Dividends’ King of Oil Stocks
Nasser confirmed that there has been a surge in demand for jet fuel and oil-derived feedstocks for petrochemical products. The development will help Saudi Aramco achieve additional revenues as it successfully meets market demand. China leads the pack in jet fuel, placing large orders with the oil giant. “We are seeing significant growth in China. We are looking at almost 20% growth in jet fuel. Just jet fuel and kerosene, you are seeing 500,000 b/d of growth,” he said.
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The US-based ExxonMobil comes at a distant second in paying dividends to investors. ExxonMobil has paid out $32.4 billion in dividends to investors in 2024, which is only roughly 25% of Saudi Aramco’s payouts.
Saudi Arabia now wants to use oil profits to build megaprojects, including the world’s tallest skyscraper. The Kingdom seeks to attract tourists like Dubai and bring in additional revenues.
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While oil is its primary source of income through the State-run giant Aramco, it plans to liberalize its economy with tourist attractions. However, the idea has yet to take off as the development is in its nascent stage.
