Aramco Reports Lower Half-Year Profits As Energy Demand Worries Mount

Saudi oil giant Aramco has reported half-year profits of $56.3 billion, down from the previous year due to weakening volumes sold amid concerns about the global economy, Jon Gambrell reported for the Associated Press (AP).

Aramco's profits in 2023 were $61.9 billion, nearly $5 billion higher than this year. I Photo: aramco Facebook

Aramco, formally known as the Saudi Arabian Oil Co., reported overall revenue for the half-year at $220.7 billion, up slightly from $218.6 billion the year before. However, profits in 2023 were $61.9 billion, nearly $5 billion higher than this year.

Aramco will pay dividends of $20.3 billion for the second quarter, along with a performance-linked dividend of $10.8 billion.

The company hopes its overall dividend for the year will exceed $124 billion.

"The decrease was primarily a result of lower crude oil volumes sold, weakening refining margins, and lower finance and other income," Aramco stated in a filing on Riyadh’s Tadawul stock exchange.

"This was partially offset by higher crude oil prices, lower production royalties compared to the same period last year, and lower income taxes and zakat," or Islamic charitable contributions.