Saudi Aramco Reports 38% Year-on-Year Decrease in Q2 Net Profit

"International Oil Price Decline Due to Margin Reduction"

Saudi Arabia's state-owned oil company Aramco reported a nearly 40% decrease in net profit for the second quarter of this year, totaling $30 billion (approximately 39.1 trillion KRW) compared to last year.

Aramco announced this in a report on the 7th (local time). This figure represents about a 38% decline from the same period last year when oil prices surged due to the Ukraine war, and is $1.8 billion less than the first quarter of this year ($31.8 billion). Aramco explained that "profits decreased due to the decline in international oil prices and reduced margins on chemical products and refining." Nasser Amin, Aramco's CEO, stated, "We have demonstrated a high level of trust in continuously meeting the demands of customers worldwide," and added, "We plan to start performance-linked dividends from the third quarter." The dividend amount for this quarter was maintained at $19.5 billion (approximately 25.5 trillion KRW).

Foreign media outlets including AFP reported that Saudi Arabia has been leading production cuts to maintain international oil prices above $80 per barrel. Saudi Arabia announced an additional production cut of 1 million barrels per day (bpd) in June and began reducing actual output from July. Currently, Saudi Arabia's crude oil production stands at about 9 million bpd.

[Image source=AP Yonhap News]

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