Saudi Arabia's state-run oil company promised to pay out $124 billion in dividends this year as cash flows fell in the second quarter but remained eye-poppingly large.

Saudi Aramco declared a $20.3 billion "base dividend" for the second quarter and performance-linked dividend of $10.8 billion to be paid in the third quarter.

Free cash flow came to $41.7 billion for the first half of the year, with $19 billion in the second quarter down from $22.7 billion in the first quarter and $23.2 billion in the second quarter last year.

Net income of $56.3 billion was reported for the half-year, with an improvement to $29.1 billion in the second quarter from $27.2 billion in the first.

The past quarter saw a secondary public offering of shares and a $6.0 billion bond offering, with strong demand from investors.

Other corporate activities included taking a 10% equity interest in HORSE Powertrain, the Renault and Geely joint venture, as well as a 40% stake in Gas & Oil Pakistan.

Aramco also in June signed power purchase agreements with the Saudi power authority for the development and operation of three new solar photovoltaic projects totaling 5.5 gigawatts, and in July agreed to acquire a 50% equity interest in US-Saudi joint venture Blue Hydrogen Industrial Gases, a venture planning to develop a lower-carbon hydrogen network in the kingdom.

President and CEO Amin Nasser hailed Aramco's "market-leading performance" and said the strong earnings meant the company could deliver "a base dividend that is sustainable and progressive, and a performance-linked dividend that shares the upside with our shareholders".

He also highlighted the progress in "key strategic areas", such as advancing a gas program, expanding investment in new energies, partnering with car manufacturers on lower-emission vehicle technologies and growing Aramco's global retail network.

“These are exciting times for Aramco as we continue to seek new opportunities to enhance our portfolio and our capabilities to enable a secure and more sustainable energy future,” he said. - Proactive Investor