Saudi oil giant Aramco on Tuesday announced a 15% drop in net profit compared to the same period last year, due to low oil prices.
ATS
Net profit amounted to $27.56 billion compared to $32.58 billion (28.15 billion francs) in the third quarter of 2023, a decline which “mainly reflects the impact of the drop in crude oil volumes sold and weakening refining margins,” the company said in a statement published on the Saudi Stock Exchange.
Saudi Arabia, the world’s top crude exporter, currently produces around 9 million barrels per day (mbd), well below its capacity of 12 mbd.
This relatively low figure reflects a series of production declines dating back to October 2022.
On Sunday, Saudi Arabia and seven other members of the OPEC+ oil producing bloc announced they would extend until the end of December a 2 mbd production cut announced in November 2023 to boost prices.
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and their allies led by Russia, concluded an agreement called OPEC+ in 2016 to better influence the market.
Crown Jewels
“Aramco delivered strong net profit and generated strong free cash flow during the third quarter, despite weak oil prices,” Chief Executive Amin Nasser said in a separate statement on Tuesday.
The company is working to “strengthen (its) position as a major global energy and petrochemicals player,” he added.
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 the post-oil era.
The company’s profits allow Saudi Arabia to finance flagship projects, including Neom, the futuristic megacity under construction in the desert, a vast airport in Riyadh, as well as major development projects in the tourism and tourism sector. hobbies.
Aramco posted record profits in 2022 after Russia’s invasion of Ukraine, which sent black gold prices soaring.
But its profit fell by a quarter last year due to falling oil prices and production cuts.
Profit for the first quarter of this year fell by 14.5% and that of the second quarter by 3.4%.
afp
