Saudi Aramco announces a decline in quarterly profits due to falling oil prices.

Saudi Arabian Oil Company (Aramco) issued its quarterly financial performance report for the third quarter and for the first nine months of 2024 on Tuesday.

In the third quarter, net profit - after zakat and tax deductions - decreased by 15.402% to 103.37 billion riyals, compared to a net profit of 122.19 billion riyals achieved by Aramco in the same period last year.

In a statement through the Saudi stock exchange (Tadawul), Aramco clarified that the decline in quarterly profits is attributed to falling crude oil prices and weak refining margins.

This was partially offset by a decrease in selling, general, and administrative expenses, driven primarily by gains from derivatives, a decrease in production revenue, and lower income and zakat taxes.

On a quarterly basis, net profit in the third quarter decreased by 5.17% compared to the second quarter, where net profits at that time amounted to 109.01 billion riyals.

During the first nine months of the year, net profits fell by approximately 11.25% to 314.65 billion riyals, down from 354.54 billion riyals achieved by Aramco in the same period last year, due to a decrease in the quantities of crude oil sold, weak refining margins, and lower financing income and other income.

Earnings per share during the same period amounted to 1.27 riyals, compared to 1.45 riyals recorded by Aramco in the equivalent period in 2023.