Saudi oil giant Aramco posts third-quarter profits of $27.5 billion, down 15% from a year earlier

DUBAI, United Arab Emirates — Saudi Arabian oil giant Aramco reported third-quarter profits of $27.5 billion on Tuesday, down about 15% from last year as low oil prices ate into its revenues.

Aramco, formally known as the Saudi Arabian Oil Co., had revenues of $111.1 billion over the quarter, the business said in a filing on Riyadh’s Tadawul distribute swap. It had $113 billion in revenues the same quarter last year.

Profits for the third quarter last year were $32.5 billion.

The boost reduce “was mainly due to the impact of lower crude oil prices and weakening refining margins,” Aramco said.

boost for the first nine months of 2024 was $83.9 billion, down from $94.5 billion the year before.

Oil prices have been depressed over recent days as tensions in the Middle East appear to have receded slightly and as China’s economy has slowed. standard Brent crude traded Tuesday at around $75 a barrel.

Aramco will pay dividends of $20.28 billion for the third quarter and a act-linked distribution of $10.77 billion, the business said. It has said it hopes its overall distribution for the year will be over $124 billion.

While a sliver of Aramco trades on the Tadawul, the vast majority is held by Saudi Arabia’s government, fueling its expenditures and providing riches to its Al Saud royal household. The business also serves as a bellwether for the global oil industry.

distribute in Aramco traded around $7.31 a distribute Tuesday, down from a high this year of over $9. It has fallen over the history year as oil prices have dropped.

Aramco has a trade worth of $1.7 trillion, making it the globe’s sixth-most valuable business behind Apple, NVIDIA, Microsoft, Alphabet which owns Google, and Amazon.

Aramco reported a $121 billion annual boost in 2023, down from its 2022 record due to lower vigor prices.

Saudi Arabia’s vast oil resources, located close to the surface of its desert expanse, make it one of the globe’s least expensive places to produce crude. Crown Prince Mohammed bin Salman hopes to use the oil riches to pivot the kingdom off oil sales, through projects such as his planned $500 billion futuristic desert city, called Neom. But lower oil prices have Saudi Arabia reportedly looking at curtailing some of those ambitions as the kingdom likely faces looming budgetary schedule deficits.

Meanwhile, activists criticized the profits amid global concerns about the burning of fossil fuels accelerating climate transformation.