Saudi Aramco Reports $27.5 Billion Profit in Q3 2024 Amid Decline in Oil Prices
Third-quarter earnings decrease by 15% compared to previous year due to lower crude prices and refining margins
Saudi Aramco announced a net profit of $27.5 billion for the third quarter of 2024, marking a 15% decline from the $32.5 billion reported in the same period the previous year.
This decrease is attributed to lower crude oil prices and weakening refining margins.
The company's revenues for the quarter stood at $111.1 billion, slightly down from $113 billion in the prior year.
For the first nine months of 2024, Aramco's total profit reached $83.9 billion, compared to $94.5 billion during the same timeframe in 2023. Despite the decline, Aramco declared dividends totaling $20.28 billion for the third quarter, along with performance-linked dividends amounting to $10.77 billion.
The company remains a significant entity in the global oil industry, with a market valuation of approximately $1.7 trillion.
The reduction in oil prices has prompted Saudi Arabia to reassess some of its large-scale projects, including the $500 billion Neom city initiative.
Aramco has also faced scrutiny regarding its profitability amid increasing concerns over the environmental impact of fossil fuels.