DUBAI - Saudi oil giant Aramco said on Tuesday it expects to declare total dividends of $85.4 billion in 2025, a near 30 percent drop from payouts in 2024 as it faced lower sales and higher costs.

Aramco paid about $124.25 billion in dividends in 2024 and had $97.78 billion in payouts in 2023.

Aramco's dividends for 2024 included about $43.1 billion in performance-linked dividends, a mechanism introduced in 2023 on top of base dividends that are paid regardless of results.

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The company declared $200 million in performance-linked dividends to be paid in the first quarter of 2025, a steep decline from the nearly $10.8 billion declared for each quarter of 2024.

Aramco reported a net profit of $106.2 billion in 2024, down from $121.3 billion in 2023.

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"The decrease was primarily driven by lower revenue and other income related to sales, higher operating costs, as well as lower finance and other income. This was partially offset by lower income taxes and zakat," Aramco said in a stock exchange filing.