Saudi Aramco reported third-quarter profits of $27.5 billion on Tuesday, marking a 15% decline compared to the previous year, as lower oil prices impacted its revenue. The company also faced challenges from reduced demand and global economic uncertainties, which contributed to the drop in profits.
Share Price Movement
During Tuesday’s trading session, the share price of Saudi Arabian Oil Company (Aramco) closed at Saudi Riyal 27.55 per share, rising 0.2 percent from its previous close of 27.50 per share. The company has a high dividend yield of 6.90 percent.
While a small portion of Aramco’s shares are listed on the Tadawul stock exchange, the majority remains owned by the Saudi government, which supports its spending and benefits the Al Saud royal family. Aramco also plays a key role in the global oil industry.
What Happened
Aramco, officially known as the Saudi Arabian Oil Co., reported quarterly revenues of $111.1 billion, down from $113 billion in the same period last year, according to a filing on Riyadh’s Tadawul stock exchange.
Third-quarter profits dropped to $27.5 billion, compared to $32.5 billion in 2023. The decline was primarily attributed to lower crude oil prices and weaker refining margins. For the first nine months of 2024, profits totaled $83.9 billion, a decrease from $94.5 billion in the previous year.
Oil prices have remained low recently due to easing tensions in the Middle East and a slowdown in China’s economy, with Brent crude trading at around $75 per barrel.
Dividend Payment
Aramco announced it will pay $20.28 billion in dividends for the third quarter, along with a performance-linked dividend of $10.77 billion. The company aims to exceed $124 billion in total dividends for the year.
Manufacturing Capacity
Saudi Aramco holds a crude oil production capacity of 12 million barrels per day and a refining capacity of approximately 5.4 million b/d across several major facilities. The company is also expanding its gas production capabilities, aiming to increase output to over 15 billion standard cubic feet per day by 2030.
About the Company
Saudi Aramco, officially the Saudi Arabian Oil Company or simply Aramco, is a majority state-owned petroleum and natural gas company that is the national oil company of Saudi Arabia. Aramco has a market value of $1.7 trillion, making it the world’s sixth-most valuable company behind Apple, NVIDIA, Microsoft, Alphabet which owns Google, and Amazon.
Written by – Siddesh S Raskar
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