Aramco Q1 Profit Falls 19% to $31.9B

©JHVEPhoto/AdobeStock
©JHVEPhoto/AdobeStock

Saudi oil giant Aramco posted a first-quarter net profit of 119.54 billion riyals ($31.88 billion) on Tuesday, a fall of about 19% from the previous year.

It said the drop was mainly driven by lower crude prices, although partially offset by lower taxes and zakat and a rise in finance and other income. 

Net profit was 3.75% higher than in the fourth quarter and above analysts' median forecast of $30.8 billion, according to Refinitiv data.

The world's top oil exporter will pay $19.5 billion in dividends for the first quarter, in line with the previous quarter. 

CEO Amin Nasser in a statement said Aramco was looking at introducing performance-linked dividends, in addition to its base distribution. 

The additional payouts would target 50%-70% of annual free cash flow, net of the base dividend and other amounts, including external investments, it said.

Aramco reached deals to expand its downstream business abroad in the first quarter, including investments in China and completing a $2.76 billion acquisition of Valvoline Inc's products business.

"We are also moving forward with our capacity expansion, and our long-term outlook remains unchanged as we believe oil and gas will remain critical components of the global energy mix for the foreseeable future," Nasser said.

The company's compression projects at Haradh and Hawiyah fields are expected to begin initial production and achieve full capacity during 2023, it said.

($1 = 3.7501 riyals)


(Reuters - Reporting by Yousef Saba; Editing by Kirsten Donovan)

Current News

OPT to Deliver AI-Ready Wave Energy PowerBuoy to Middle East

OPT to Deliver AI-Ready Wave E

Ramco Hooks Long-Term Pipe Servicing Contract with Equinor

Ramco Hooks Long-Term Pipe Ser

Senegal President Says Oil Contracts Will be Renegotiated

Senegal President Says Oil Con

Egypt Considering Adding New Regasification Vessel in Ain Sokhna

Egypt Considering Adding New R

Subscribe for OE Digital E‑News

Offshore Engineer Magazine