Saudi Aramco Q2 profit drops 3.4% on lower volumes, refining margins

Oil giant Saudi Aramco on Tuesday reported a 3.4 per cent fall in second-quarter profit on lower crude volumes and softer refining margins.

Aramco posted a second-quarter net income of $29.03bn (SAR109.01bn) in the three months to June 30, beating a company-provided median estimate from 15 analysts of $27.7 billion.

The energy firm declared dividends of $31.1bn for the second quarter, including $10.8bn in performance-linked payouts. Aramco introduced the performance-linked dividends last year on top of a base dividend that is paid regardless of results, an uncommon practice among listed companies.

Aramco said it expects $124.2bn in total dividends in 2024, roughly in line with previous guidance of $124.3bn.

Saudi Arabia’s government holds nearly 81.5 per cent of Aramco and relies heavily on the company’s payouts, which include royalties and taxes. The country’s wealth fund, the Public Investment Fund, holds another 16 per cent of Aramco and also benefits from its dividends.

Read: Saudi Aramco set to raise $6bn from three-part bonds