Aramco reports net income decline of 15.3 percent in Q3
Date
11/5/2024 7:50:27 AM
(MENAFN) Saudi Arabia's national oil company, Aramco, reported a net income decline of approximately 15.3 percent for the third quarter of 2024, in line with analyst expectations, as outlined in their financial results released on Tuesday. The company posted a profit of around USD27.6 billion for the July-September period, down from USD32.6 billion during the same quarter last year. Revenue for this period was reported at approximately USD103.3 billion, a significant decrease from USD122.1 billion in Q3 2023.
The drop in profit has been attributed primarily to lower crude oil prices and diminished refining margins. However, this decline was somewhat mitigated by a reduction in selling, administrative, and general expenses. Aramco reported gains from derivative instruments and a decrease in production royalties due to the lower crude oil prices and a reduced average effective royalty rate compared to the same quarter last year.
Amin H. Nasser, President and CEO of Saudi Aramco, commented on the results, stating that the company achieved robust net income and strong free cash flow during the third quarter, despite the challenging low oil price environment. He highlighted ongoing progress in upstream developments, the strengthening of the downstream value chain, and advancements in their new energies program, indicating a commitment to investing throughout market cycles.
Nasser emphasized the company's strategy to maintain a positive trajectory and strengthen its position as a leading player in the global energy and petrochemicals sectors by focusing on strategic growth opportunities and enhancing value through integration and diversification. This approach is aimed at ensuring resilience and adaptability in the face of fluctuating market conditions.
MENAFN05112024000045015839ID1108852594
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.