Saudi Aramco Profit Shrinks by 14.4% in Q1
Saudi Arabia’s national oil company, Aramco, posted a 14.4% drop in net profit during the first quarter of 2024 in line with analyst expectations, according to its financial results statement released to the market.
The company attributed the decline to reduced crude oil volumes sold, weaker refining and chemicals margins, and a decrease in finance and other income.
These factors were offset by lower production royalties and a rise in crude oil prices year-on-year, the energy giant said.
The Saudi Government-backed company’s revenue fell by about 4% to $107.21 billion from $111.32 billion in Q1 2023. Aramco’s total hydrocarbon production averaged 12.4 million barrels of oil equivalent per day during the quarter.
Details showed that the national oil company earned around $27.3 billion in the first quarter of 2024, more than 14% below $31.9 billion reported in the same quarter last year.
The revenue for the January–March period reached around $107.2 billion, compared to $111.3 billion for the same quarter of 2023.
The fall in the company’s profit was partially due to lower production royalties and an increase in crude oil prices compared to the same period last year.
Saudi Aramco’s President and Chief Executive, Amin H. Nasser, said: “Our first quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, industries, and people worldwide.”
“We also continue to execute our long-term strategy, and in the first quarter we made significant progress on expanding our gas business and growing our globally integrated downstream value chain while maintaining our focus on consistently delivering value for our shareholders,” he added.
He also stated that the company’s portfolio would evolve with the aim of contributing to the energy transition while recognizing the need for affordable, reliable and flexible energy supplies. # Saudi Aramco Profit Shrinks by 14.4% in Q1
