DUBAI, United Arab Emirates — Saudi state-run oil big Aramco on Monday reported $30 billion in second quarter revenue, an almost 40% decline from the identical interval the earlier 12 months that it attributed to decrease oil costs.
Total gross sales stood at simply over $106 billion, down from $150 billion within the second quarter of 2022. In an earnings report filed with the Saudi inventory alternate, Aramco mentioned the lower “mainly reflected the impact of lower crude oil prices and weakening refining and chemicals margins.”
The firm reported internet earnings of $30 billion, in comparison with $48 billion within the second quarter of 2022, a decline of 37.8%.
Aramco however raised its dividend paid out to buyers to $29.38 billion, in comparison with $18.8 billion within the second quarter of 2022. The performance-based dividend is partly based mostly on the corporate’s file earnings final 12 months, it mentioned.
“Our strong results reflect our resilience and ability to adapt through market cycles,” Aramco CEO Amin Nasser mentioned in an announcement accompanying the report. The firm’s shares rose 1.08% on Monday.
Last week, Fortune journal ranked Aramco, formally referred to as the Saudi Arabian Oil Co., the second greatest firm on this planet by income, behind solely Walmart and forward of Amazon and Apple. The rating got here after the oil firm reported a revenue of over $160 billion in 2022, the most important ever recorded by a publicly traded agency.
Those sorts of earnings will come below heightened scrutiny later this 12 months when the United Arab Emirates, one other main oil producer, hosts annual U.N. local weather talks geared toward getting the world to slash emissions and cut back its reliance on fossil fuels.
Aramco benefited from a spike in oil costs final 12 months brought on by Russia’s invasion of Ukraine. Internationally traded oil peaked at over $120 a barrel in June 2022 earlier than settling in a variety of $75 to $85 for a lot of the previous 12 months.
Robin Mills, CEO of Qamar Energy, an vitality consultancy based mostly within the UAE, mentioned it was “not surprising” that Aramco’s earnings slid, including that it has fared higher than another oil majors within the latest downturn.
“A relatively good result for Aramco, given the situation,” he mentioned.
Saudi Arabia has repeatedly reduce its oil manufacturing in latest months and pressed fellow OPEC members to do the identical in an try and push up costs within the face of weaker demand from China and rising rates of interest geared toward combatting inflation.
Source: www.bostonherald.com”