Saudi Aramco Reports 3.4% Decline in Q2 Profits Amid Lower Crude Volumes

Oil giant Saudi Aramco reported a 3.4% decline in its second-quarter profits, citing lower crude volumes and softer refining margins as primary factors. Despite the decline, the company declared dividends of $31.1 billion, with significant payouts to the Saudi government and its sovereign wealth fund, PIF.

Oil giant Saudi Aramco on Tuesday reported a 3.4% fall in second-quarter profit, attributing the decrease to lower crude volumes and softer refining margins.

In the three months to June 30, Aramco posted a net income of 109.01 billion riyals ($29.03 billion), surpassing the median estimate from 15 analysts, which was $27.7 billion. Dividends declared for the second quarter amounted to $31.1 billion, including $10.8 billion in performance-linked payouts. This practice was introduced last year alongside a base dividend paid regardless of results, setting Aramco apart from most listed companies.

Aramco anticipates total dividends of $124.2 billion in 2024, in line with earlier guidance. The Saudi government, which owns nearly 81.5% of Aramco, heavily depends on the company's payouts, including royalties and taxes. Additionally, Saudi's sovereign wealth fund PIF, holding another 16% of Aramco, also benefits substantially from these dividends.

(With inputs from agencies.)