Saudi Aramco Q2 profit plunges on lower crude prices and weak margins

Saudi Aramco Q2 profit plunges on lower crude prices and weak margins

Saudi Aramco posted a 38% year-on-year (YoY) drop in Q2 2023 net profit to $30.1 billion from $48.3 billion on lower crude oil prices and weakening refining and chemicals margins. It maintained, however, that the outlook is positive.

“At Aramco, our mid to long-term view remains unchanged. With a recovery anticipated in the broader global economy, along with increased activity in the aviation sector, ongoing investments in energy projects will be necessary to safeguard energy security," CEO Amin H. Nasser, said.

Sales revenue came to $107.3 billion, down 28% YoY. Total hydrocarbon produced in Q2 totalled 13.5 million barrels of oil equivalent per day.

The integrated oil and gas company said Q1 base dividend of $19.5 billion will paid in Q2, up 4% (YoY) and Q2 dividend of $19.5 billion will be paid in the third quarter.

It intends to distribute performance-linked dividends over six quarters from Q3 2023. First distribution of approximately $9.9 billion in Q3 2023 will be based on combined full-year 2022 results and half-year 2023 results.

Cash flow from operations in Q2 came to $33.6 billion, while free cash flow was 23.1 billion versus $34.6 in the year-ago period.

Aramco said plans to increase its gas production capacity to meet domestic demand