Saudi Aramco’s profits decline in Q2 2023

Q2 net income amounted to SAR112.81 bn

Saudi Aramco

Published: Mon 7 Aug 2023, 2:19 PM

Last updated: Mon 7 Aug 2023, 3:14 PM

Saudi Aramco recorded in the second quarter (Q2) of 2023 profits of $30.08 billion. This reflects a significant decrease of approximately 38 percent compared to the same period last year. The decline might be due to last year’s significant surge in oil prices caused by Russia’s conflict with Ukraine.

The company announced on Monday that its net income for the second quarter of 2023 was SAR 112.81 billion ($30.08 billion), a decrease from SAR 181.64 billion ($48.44 billion) reported for the same quarter in 2022. The company released this information through a statement posted on the Saudi financial market website Tadawul.

Saudi Aramco highlighted that the decline was primarily due to the impact of low crude oil prices and weak margins in the refining and chemicals business.

Anticipated decline

Following a remarkable surge in 2022 during the Russo-Ukrainian war, the decline in profits was largely anticipated, with a 19.25 percent decrease in the first quarter of 2023.

Amin H. Nasser, the president and CEO of Aramco, said: “Our robust performance showcases our resilience and adaptability amidst market volatility. It also underscores our unwavering commitment to effectively cater to the demands of customers worldwide, ensuring unwavering reliability.”

Saudi Arabia, the world’s largest crude oil exporter, cut its production by 500 thousand barrels per day (bpd) in April. This reduction was part of a collaborative initiative with other oil-producing nations to stabilize prices. This output cut contributed to an overall decrease in global supplies by over 1 million bpd, aiming to bolster oil prices.

In June, the Saudi Ministry of Energy implemented an additional voluntary production cut of 1 million bpd. This reduction, which commenced in July, was recently extended until September.

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