Aramco sees net profit decline in 3rd quarter

Ryad: Saudi oil giant Aramco announced on Tuesday a 15% drop in net profit compared to the same period last year, due to low oil prices.

Net profit amounted to $27.56 billion compared to $32.58 billion (28.15 billion Swiss francs) in the third quarter of 2023, a decline which “primarily reflects the impact of lower 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 largest crude exporter, currently produces around 9 million barrels per day (mb/d MBJ Abbreviation of Million(s) of Barrels (crude oil) per Dayknowing that a barrel is approximately equivalent to 159 liters or 42 American gallons.), well below its capacity of 12 mb/d MBJ Abbreviation of Million(s) of Barrels (crude oil) per Dayknowing that a barrel is approximately equivalent to 159 liters or 42 American gallons..

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 a 2 mb/d production cut until the end of December MBJ Abbreviation of Million(s) of Barrels (crude oil) per Dayknowing that a barrel is approximately equivalent to 159 liters or 42 American gallons. announced in November 2023 to raise 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.

“Aramco posted strong net profit and generated strong free cash flow during the third quarter, despite weak oil prices” its general director, Amin Nasser, said in a separate statement on Tuesday.

The company strives to “strengthen (its) position as a major global player in energy and petrochemicals“, 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 of 3,4%.