oann

Aramco’s Q2 profit falls 38% to $30.1B, raises dividend.

By Maha El Dahan and Yousef Saba

DUBAI⁢ (Reuters) -Saudi Arabian state oil giant Aramco‌ reported a near 38% drop⁣ in second-quarter net profit on Monday⁣ amid weaker oil prices and thinner refining and chemicals margins, as it boosted its dividend with a​ new⁣ performance-linked payout.

Advertisement

Aramco’s net profit fell to 112.81 billion riyals ($30.07 billion) for the quarter to June 30⁢ from 181.64 ⁣billion riyals a year earlier, beating a company-provided median estimate from 15⁢ analysts of‌ $29.8 billion.

The group declared a base dividend of about $19.5 billion for ⁤the second quarter, roughly in line with its payout for the first⁤ quarter.

Aramco ​will begin⁣ paying performance-linked dividends for ⁢six quarters, ⁣starting with a $9.87 billion payout in the third quarter, it said.

The Saudi state remains overwhelmingly Aramco’s biggest shareholder. The government directly holds 90.19%, the sovereign Public Investment ⁢Fund owns 4%​ and another⁤ 4% is held by PIF subsidiary Sanabil, according to​ Refinitiv ⁢data.

Saudi Arabia has posted a budget deficit of 8.2⁤ billion riyals in the first​ half of 2023, raising the ⁤possibility of a full-year deficit after it ‍notched its first surplus in nearly a decade last year.

Most oil majors reported strong or record-breaking​ earnings in the second quarter of ⁢2022 after Western sanctions against major ‍exporter Russia squeezed an already undersupplied global market, causing a​ surge​ in crude and natural gas prices.

Brent has‌ dropped⁤ from $113 a barrel a year ago, hit by concerns over an economic slowdown and ample supplies. Moscow and Riyadh have been trying ‍to prop up prices.

Oil futures are now at their highest since mid-April after ‍Saudi Arabia⁣ and Russia pledged‌ last week to keep supplies down for another month to‍ tighten global markets further. ‍Brent was trading around $86 a barrel on Monday.

OPEC+, which groups the de facto Saudi-led Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around​ 40% of ⁢the world’s crude. The group ​has been⁤ limiting supply‍ since late last year to bolster the market.

“At Aramco,⁤ our mid to long-term⁣ view remains unchanged. With a recovery anticipated in the​ broader global⁤ economy, along with increased activity in the aviation sector, ongoing investments in energy projects will be necessary to safeguard ⁤energy security,” CEO Amin Nasser​ said ⁣in a statement.

The firm still sees capital expenditure at between $45 billion and $55 billion this ⁤year, Nasser said on ‍a media call.

He expected Chinese demand ‌to continue growing and said its chemicals sector was growing at a⁢ substantial pace and that Aramco continued‌ to eye potential acquisitions there.

Aramco’s shares, which​ were up⁣ 2.2% at 0812 GMT on Monday, have risen about 12.7% this year to 32.9 riyals.

(Reporting by Maha El Dahan and Yousef Saba; Editing by Jan Harvey and Bernadette Baum)

This week’s major headlines

Interview with ⁣Dr. Carole Lieberman

Interview with‌ Tom MacDonald

Interview with Gregory Angelo

North Korean hackers ​breach⁢ computer networks

Paytm Chairman buys stake in the⁤ firm

Medieval advances in plough and poverty

U.S. financial‍ investor ⁢buys stake in OHB



" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker