Saudi Aramco’s Ras Tanura refinery and oil terminal
Ahmed Jadallah | Reuters
Saudi Arabia’s state-owned oil giant Aramco reported a 15.4% drop in third-quarter net profit due to “falling crude oil prices and weak refining margins,” but maintained a $31.05 billion dividend.
The company reported net profit of $27.56 billion for the July-September period, above the company’s forecast of $26.9 billion. The figure was also down 5% from the previous quarter’s $29.1 billion as falling global oil prices, weak demand and long-term OPEC+ production cuts led by Saudi Arabia continue to weigh on crude prices.
According to data from Saudi Arabian bank Al Rajhi Capital, the average price of oil in the second quarter of 2024 was US$85 per barrel, but as non-OPEC supply grew, the average price of oil fell to US$78.7 per barrel in the third quarter.
The oil company said its year-over-year decline was partially offset by “lower selling, administrative and general expenses driven primarily by derivative gains and lower production royalties,” which primarily reflected lower crude oil prices and lower average production Effective royalty rates compared to the same period last year.
Saudi Aramco’s dividends include a basic dividend of $20.3 billion and a performance-related dividend of $10.8 billion.
Earnings before interest and taxes (EBIT) in the third quarter were US$51.45 billion, a year-on-year decrease of 17%. Saudi Aramco’s capital expenditure guidance was raised by 20% to $13.23 billion.
The gains were in line with an overall trend among oil majors, whose third-quarter profits were also hurt by falling crude prices and refining margins. Saudi Aramco said the average realized price of crude oil in the third quarter was US$79.3 per barrel, compared with US$89.3 per barrel in the same period last year.
Saudi Arabia is the world’s largest crude exporter, currently producing about 9 million barrels a day, and is the de facto leader of the OPEC+ alliance of oil producers, part of which agreed over the weekend to delay a planned December production increase by a month. back.
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