Saudi Aramco reports lower crude prices as profits fall around 38% in the second quarter.

Saudi Aramco, the world’s third largest company by market capitalization, reported a 38% drop in net income for the second quarter to $30.1 billion.

The oil giant cited falling crude prices and industry trends in a news release. Despite the significant dip, profits exceeded the $29.3 billion predicted by Bloomberg polled analysts.

“The decrease was primarily due to the impact of lower crude oil prices and weakening refining and chemicals margins,” the business stated in a press release.

It’s a long cry from 2022, when the state-run corporation saw a 90% increase in net income for the second quarter following Russia’s invasion of Ukraine. However, it now joins other energy firms in functioning in a cooling market. ExxonMobil, Shell, and TotalEnergies also announced significant drops in their latest results.

“Our mid to long-term view remains unchanged,” Aramco CEO Amin Nasser stated in the release. “With a recovery expected in the global economy and increased activity in the aviation sector, ongoing investments in energy projects will be required to ensure energy security.”

Saudi Arabia, the leading actor in the Organization of Petroleum Exporting Countries, announced in June that it will reduce oil output by 1 million barrels per day beginning in July in order to support declining crude prices. That statement has since been extended into August and September, with the possibility of continuing into October.

At a meeting in Vienna two months ago, the rest of OPEC+, including Russia, agreed to extend earlier production restrictions through the end of next year.

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