Home Industry Energy Aramco reports a drop in profits of 38% in Q2 2023 The world’s largest oil company reported that it had paid out a base dividend for Q1 2023 of $19.5bn in the second quarter, which was up 4 per cent year-on-year by Marisha Singh August 7, 2023 Image credit: Saudi Aramco Saudi Arabia’s public oil and petrochemicals company, Aramco reported a 38 per cent drop in its second-quarter net profit due to lower oil prices and thinner margins in refining and chemicals. Aramco’s net profit fell to SAR112.81bn ($30.07bn) for the quarter to June 30 from SAR181.64bn ($48.4bn) billion a year earlier, the oil producer stated in its earnings report in a regulatory filing on the Tadawul stock exchange. On the same lines, net income for the first half of this year fell nearly 30 per cent to $61.96bn as compared to the same period last year. Additionally, the world’s largest oil company reported that it had paid out a base dividend for Q1 2023 of $19.5bn in the second quarter, which was up four per cent year-on-year, and Q2 2023 dividend of $19.5bn will be paid in the third quarter. Amin H Nasser, President and CEO of Aramco, said, “We continue to demonstrate our long-standing ability to meet the needs of customers around the world with high levels of reliability. For our shareholders, we intend to start distributing our first performance-linked dividend in the third quarter.” “At Aramco, our mid to long-term view remains unchanged. With a recovery anticipated in the broader global economy, along with increased activity in the aviation sector, ongoing investments in energy projects will be necessary to safeguard energy security. Aramco’s revenues down due to monthly production cuts Aramco’s revenue for the second quarter of the year fell 28 per cent to $107bn from the same quarter a year earlier. Revenue fell about four per cent from the first three months of 2023 as Saudi Arabia’s oil production cuts came into effect. However, the oil producer reported an average realised crude price of $79.9 per barrel. Cash flow from operating activities came in at $33.6bn in the second quarter and $73.3bn in the first half of the year. Free cash flow was $23.2bn in the second quarter and $54.1bn during the first half of 2023. The company said its gearing ratio was down 10.5 per cent at the end of June. Image credit: Aramco Nasser added, “We are maintaining the largest capital spending program in our history, with the aim of increasing our oil and gas production capacity and expanding our downstream business – with petrochemicals projects, such as our $11bn billion expansion of the SATORP refinery with TotalEnergies, essential to meet future demand. “At the same time, we remain optimistic about the potential for new technologies to reduce our operational emissions, and our recent blue ammonia shipments to Asia highlight the growing market interest in the potential of alternative, lower-carbon energy solutions.” Outlook for 2023 Aramco reported that its upstream oil and gas developments are on track, including the Marjan, Berri, Dammam, and Zuluf crude oil increments, as part of broader capacity expansions. Its downstream growth strategy advanced with the award of engineering, procurement, and construction contracts for the $11.0bn Amiral petrochemicals complex. It added that it has dispatched accredited lower-carbon ammonia shipments to key markets, which supports the development of the country’s decarbonisation options. Tags lower-carbon energy solutions Oil Production Petrochemical SATORP refinery Saudi Aramco TotalEnergies 0 Comments You might also like Italy’s Saipem wins offshore contract worth $2bn in Saudi Arabia Saudi Aramco boosts stake in MidOcean, fund new stake in Peru LNG Italy’s Saipem secures $4bn contract from QatarEnergy Saudi Aramco allocates $100m to boost R&D at KAUST