The company said the reduction “primarily reflects the impact of lower crude oil volumes sold and weakening refining margins.”
Saudi oil company Aramco on Tuesday reported net profit of $29.07 billion (€111 billion) for the second quarter of 2024, down 3.4% from the same period last year.
In a statement to the Saudi stock exchange, the company said the reduction “mainly reflects the impact of lower crude oil volumes sold and weakening refining margins.”
Saudi Arabia, the world’s largest crude oil exporter, It currently produces around nine million barrels per day. (mbd), well below its capacity of 12 mbd.
According to Riyadh-based consultancy Jadwa Investment, average output was 8.8 mbd in June.
The figure reflects cuts dating back to October 2022, when the OPEC+ oil producing bloc, which Saudi Arabia co-leads with Russia, announced it would cut production by two mbd to boost prices.
In April 2023, several OPEC+ members announced they would further reduce production by more than 1 mbd, and in June 2023, Riyadh announced a further voluntary reduction of 1 mbd.
“Production will remain at similar levels at least until October,” when an OPEC+ agreement announced in June this year will allow for “gradual monthly increases,” Jadwa said.
Aramco is the jewel of the Saudi economy and the main source of revenue for Crown Prince Mohammed bin Salman’s Vision 2030 reform program, which aims to prepare the kingdom for a post-oil era.
Saudi Arabia has pledged to cut its carbon emissions to zero by 2060, a promise that has sparked skepticism among environmental advocates.
Government involvement in Aramcoone of the largest companies in the world in terms of market capitalization, It is approximately 81.5%.
Aramco’s partial IPO in 2019, the largest ever, raised $29.4 billion (26.9 billion euros), and a secondary offering this year of nearly 1.7 billion shares raised $12.35 billion (11.3 billion euros).
Last year, Aramco announced it would start paying performance-based dividends in addition to the base dividend.
In May, the company announced a base dividend for the first quarter totaling $20.3 billion (€18.6 billion) and a profitability dividend of $10.8 billion (€9.9 billion), to be paid during the second quarter.
Aramco posted “second-highest profit in its history” in 2023, despite a 24.7% drop from the previous year.
In 2022, the record net profit of $161 billion (€147 billion) was due to higher crude oil prices due to the war in Ukraine and increased oil demand following the pandemic, a variable that decreased over time throughout the year.
Source: Observadora
