Saudi state oil giant Aramco posted a 23% drop in net profit in the third quarter, down to $32.6 billion attributable to “the impact of lower crude oil prices and volumes sold,” the company said.
The third-quarter net profit result marked a steep decline from $42.4 billion the same time last year, but still beat analyst estimates near $31.8 billion. Free cash flow for the company was slashed to $20.3 billion, less than half of what it was in the third quarter of 2022 at $45 billion.
Why it matters
The drop in profitability this year has been in line with industry trends, with energy majors like ExxonMobil and Chevron seeing sharp annual declines in the third quarter, as weaker oil prices filter through the sector. Saudi Arabia, as the leading producer and kingpin of the OPEC, has been implementing multiple production cuts, both as part of the formal OPEC policy and as individual voluntary declines.