- The profits of Saudi Aramco declined in the second quarter of this year by 38%, to reach net income of 112.8 billion Saudi riyals ($30.1 billion), amid a reduction in oil production and a decline in crude prices compared to the corresponding period of last year. The average forecast of Bloomberg analysts was that Aramco's total revenues and net profits would decline in the second quarter to 412.05 billion riyals and 109.87 billion riyals, respectively, as a reflection of the decline in oil prices.
- “Our strong results reflect our resilience and ability to adapt during market volatility,” said Amin Al-Nasser, the company's president and chief executive officer, in a statement. We also continue to demonstrate our long-term ability to meet the needs of customers around the world with high levels of reliability.” Aramco's revenues fell by 28.38% during the second quarter to 402.56 billion riyals ($107.3 billion), compared to 562 billion riyals during the same period last year.
Why it matters
Aramco's revenues were affected by Saudi Arabia's reduction in oil production by 500,000 barrels, starting from last May, in compliance with the decision of the "OPEC +" coalition. While crude prices did not rise strongly, as the average price of a standard Brent barrel was approximately $78 during the second quarter of this year. Crude prices fell during the second quarter by more than 6.5%, while the decline in the first half of the year was about 12%. Aramco recommended distributing cash dividends for the second quarter of 73.2 billion Saudi riyals ($19.5 billion) in the third quarter.
