Aramco's Q2 Profit Falls 3% Due to Lower Output

Saudi Arabian Oil Co., commonly known as Aramco, reported a 3.4% decline in second-quarter profits, posting a net income of 109.01 billion riyals ($29.03 billion) for the period ending June 30. This figure, despite being lower than the previous year, exceeded the median estimate of $27.7 billion from analysts. The decline was attributed to reduced crude oil volumes and softer refining margins, reflecting ongoing challenges in the energy market.

For the first half of the year, Aramco's profits amounted to $56.3 billion, a decrease from the previous year. The company's revenue, however, saw a slight increase to $220.7 billion from $218.6 billion. The decline in profits was primarily due to lower crude oil volumes sold, weakening refining margins, and reduced finance and other income. In response, Aramco reaffirmed its second-quarter base dividend of $20.3 billion and announced a performance-linked dividend of $10.8 billion to be paid in the third quarter.

Aramco's financial performance has drawn criticism from activists concerned about climate change. The company's market value stands at $1.7 trillion, making it the world's fifth-most valuable firm. Amid these financial results, Saudi Arabia continues to work within the OPEC cartel to manage global oil production in an effort to stabilize and boost global oil prices.