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Saudi Aramcoโ€™s profits decline in Q2 2023

Q2 net income amounted to SAR112.81 bn
Saudi Aramcoโ€™s profits decline in Q2 2023
Saudi Aramco

Saudi Aramco recorded in the second quarter (Q2) of 2023 profits of $30.08 billion. This reflects a significant decrease of approximately 38 percent compared to the same period last year. The decline might be due to last yearโ€™s significant surge in oil prices caused by Russiaโ€™s conflict with Ukraine.

The company announced on Monday that its net income for the second quarter of 2023 was SAR 112.81 billion ($30.08 billion), a decrease from SAR 181.64 billion ($48.44 billion) reported for the same quarter in 2022. The company released this information through a statement posted on the Saudi financial market website Tadawul.

Read more: Aramco acquires 10 percent stake in Chinaโ€™s Rongsheng Petrochemical for $3.4 bn

Saudi Aramco highlighted that the decline was primarily due to the impact of low crude oil prices and weak margins in the refining and chemicals business.

Anticipated decline

Following a remarkable surge in 2022 during the Russo-Ukrainian war, the decline in profits was largely anticipated, with a 19.25 percent decrease in the first quarter of 2023.

Amin H. Nasser, the president and CEO of Aramco, said: โ€œOur robust performance showcases our resilience and adaptability amidst market volatility. It also underscores our unwavering commitment to effectively cater to the demands of customers worldwide, ensuring unwavering reliability.โ€

Saudi Arabia, the worldโ€™s largest crude oil exporter, cut its production by 500 thousand barrels per day (bpd) in April. This reduction was part of a collaborative initiative with other oil-producing nations to stabilize prices. This output cut contributed to an overall decrease in global supplies by over 1 million bpd, aiming to bolster oil prices.

In June, the Saudi Ministry of Energy implemented an additional voluntary production cut of 1 million bpd. This reduction, which commenced in July, was recently extended until September.

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