Saudi Aramco Q3 profit falls 23% on lower crude oil prices, volumes

Image credit: Saudi Aramco

Saudi oil giant Aramco on Tuesday reported a 23 per cent fall in third-quarter net profit, marginally beating analyst estimates, on lower crude oil prices and volumes sold.

Net profit declined to $32.6bn for the quarter to September 30 from $42.4bn a year earlier.

The Saudi oil giant said the decline in oil prices and volumes was partially offset by a reduction in production royalties during the period.

A company-provided median estimate from 12 analysts had expected net profit of $31.8bn in the quarter.

Aramco recorded revenues of $113.09 billion in the quarter, compared with $144.99bn in the year-ago period.

Energy majors Chevron and Exxon Mobil last month posted sharp year-on-year drops in third-quarter profit as energy prices cooled.

Higher crude prices help Aramco

Earnings by the state oil giant have benefitted from higher crude oil prices compared to the previous quarter, but prices are well off record year-ago levels.

Saudi Arabia, OPEC’s de facto leader, said it would continue with its voluntary oil output cut of one million barrels per day (bpd) until the end of the year and that it would review the decision again next month.

Aramco declared a base dividend of $19.5bn for the third quarter.

The company approved a second distribution of its performance-linked dividends with a $9.87bn payout in the fourth quarter, equal to the first performance-linked payout.

The second performance-linked dividend is based on Aramco’s results in 2022 and the first nine months of 2023. Subsequent distributions are expected to be adjusted to reflect the remaining results for 2023, the company said.

Read: Saudi Aramco, Hyundai to set up $2.4bn gas plant in Jafurah