Saudi Aramco Reports Significant Drop in Q2 Profits

Saudi Aramco, the world’s leading oil firm, reported a 38% decline in second-quarter profits, amounting to $30.08 billion. This substantial drop is attributed to lower crude oil prices and diminishing refining and chemicals margins, according to a statement the company released on the Saudi stock exchange. This decrease comes after the firm’s first-quarter profits fell by 19.25%. Despite the setback, CEO Amin Nasser remains confident in the company’s robustness and adaptability. “We continue to demonstrate our long-standing ability to meet global customer needs reliably,” Nasser stated. To further assist shareholders, Nasser announced the forthcoming distribution of the first performance-linked dividend in the third quarter. Following a decision made in April, Saudi Aramco reduced its oil production after the Saudi government announced cuts of 500,000 barrels per day, aimed at stabilizing prices. Another cut of 1 million bpd was initiated in July and will extend through September, limiting the country’s daily production to 9 million bpd. The profits from Aramco are pivotal for Crown Prince Mohammed bin Salman’s Vision 2030 program, which aims to diversify the economy. To balance its budget, analysts believe Saudi Arabia requires oil prices of around $80 per barrel, which is now being exceeded due to recent production cuts.