Saudi oil giant Aramco reported half-year profits of $56.3 billion, a decline from the previous year as global economic uncertainties dampened energy prices.
Aramco, officially the Saudi Arabian Oil Co., saw its overall revenue rise slightly to $220.7 billion, up from $218.6 billion the year before.
However, profits fell from $61.9 billion in 2024.
The company attributed the drop to lower crude oil volumes sold, weaker refining margins, and reduced finance and other income, partially offset by higher crude oil prices and lower production royalties and taxes.
Aramco announced second-quarter dividends of $20.3 billion and a performance-linked dividend of $10.8 billion, aiming for an annual dividend exceeding $124 billion.
Despite some of Aramco trading on Riyadh’s Tadawul stock exchange, the majority remains government-held, supporting Saudi Arabia’s expenditures and enriching the Al Saud royal family.
Saudi Arabia, an OPEC leader, has collaborated with Russia and others to curb production and stabilize global oil prices. Brent crude traded around $77 a barrel on Tuesday.
Global business markets faced turmoil, with Japan’s Nikkei stock market plummeting 12.4% on Monday, its worst decline since 1987, though it rebounded on Tuesday.
U.S. hiring slowed in July, raising fears that the Federal Reserve’s prolonged high interest rates might have overly restrained the economy.
Crude oil prices, which collapsed during the pandemic and surged in 2022 due to Russia’s invasion of Ukraine, have now fallen to a six-month low amid economic concerns.
This has eased fuel prices ahead of the November election between former President Donald Trump and Vice President Kamala Harris.
Aramco’s market value stands at $1.7 trillion, making it the fifth-most valuable company globally, behind Apple, Microsoft, NVIDIA, and Alphabet. However, Aramco’s stock has dropped nearly 20% over the past year due to falling oil prices.
The company reported a $121 billion profit in 2024, down from its record 2022 earnings.
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