Aramco announces 19% drop in profits in the first quarter

The company attributed this decline to low oil prices
Aramco announces 19% drop in profits in the first quarter

Saudi Aramco announced on Tuesday that it achieved a net profit of $31.87 billion in the first quarter of 2023, compared to $39.5 billion in the same period of 2022, a decline of 19.25 percent.

The Saudi giant attributed “this decline mainly to lower crude oil prices.”

It announced that its net profit reached 119.54 billion riyals ($31.87 billion) in the first three months of this year, compared to 148.03 billion riyals ($39.5 billion) in the same period last year.

Data on analysts’ expectations for Saudi Aramco’s business results indicate a decline in the company’s profits and revenues during the first quarter of this year.

Read: Move over Microsoft. Aramco now world’s second largest company

The median analyst forecast for the first quarter of this year, announced by the world’s largest oil producer on Tuesday, indicates a decline in profit by 12.9% to 123.7 billion riyals, according to Bloomberg data.

According to the latest government data issued by the General Authority for Statistics, the Kingdom’s oil revenues fell 3 percent to achieve 178.6 billion riyals in the first quarter of 2023 compared to 183.7 billion riyals for the same period of 2022.

Oil exports in January fell 1.7 percent year-on-year to 82.1 billion riyals. In February, it fell 11.7 percent year-on-year.

The decline in revenues came as a result of the decline in oil prices during the first quarter of this year by more than 5 percent, after Saudi Arabia announced a reduction in oil production with the “OPEC+” alliance by two million barrels per day as of the first of last November before the alliance deepened the reduction in May in light of the agreement on a voluntary reduction exceeding one million barrels per day.

For more on Aramco. click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.