Saudi oil giant Aramco announced Tuesday that net profit fell 23% in the third quarter compared with the same period last year, accompanied by lower oil prices and production.
The company recorded a profit of $32.58 billion (30.3 billion euros), compared with $42.43 billion (39.5 billion euros) in the same period last year.
The results reflect “the impact of falling oil prices and sales volumes,” the company said in a statement.
Aramco’s profit fell 19.25% in the first quarter of the year and 38% in the second compared with the same periods last year. Last year, Russia’s invasion of Ukraine in February sent oil prices soaring to more than $130 a barrel.
At the time, Aramco recorded a record profit of US$161.1 billion ($149.9 billion), its second-largest annual gold surplus in nearly a decade.
Prices are expected to average around $85 a barrel this year, according to Riyadh-based Jadwa Investment. Analysts estimate $80 is the average price level needed to balance Saudi Arabia’s budget, a goal that could be jeopardized by rising government spending and cuts in oil production.
The world’s largest crude oil exporter announced in April it would cut output by 500,000 barrels a day as part of a coordinated effort with other oil-producing countries to support prices.
In June, Saudi Arabia’s Energy Ministry announced an additional production cut of one million barrels per day, which took effect in July. The cuts will last until December, the ministry confirmed on Sunday.
The kingdom’s output now stands at about nine million barrels a day, well below its stated daily capacity of 12 million.
Author: Lusa
Source: CM Jornal
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