Riyadh November 7 2023: In the first nine months of 2023, Saudi Arabian Oil Co. (Saudi Aramco) reported a 26% decline in net profit, accounting for minority interest, with a total of SAR 349.89 billion (USD 93.3 billion), as opposed to SAR 471.88 billion in the same period in the previous year.
The decline in profit can primarily be attributed to reduced crude oil prices and diminished profitability in the refining and chemicals sectors. However, this was partly balanced by a decrease in production royalties, primarily driven by a lower average effective royalty rate and the drop in crude oil prices.
Furthermore, the oil company also disclosed an increase in finance and other income, coupled with a decrease in income taxes and Zakat.
In the third quarter of 2023, the net profit, excluding minority interest, saw a 21% decrease, falling to SAR 123.53 billion from SAR 156 billion. This decline was primarily attributed to lower crude oil prices and reduced sales volume. However, it was partially mitigated by a reduction in production royalties resulting from a lower average effective royalty rate and declining crude oil prices.
In a sequential comparison, the third-quarter net earnings increased by 13.5% from SAR 108.88 billion.
Additionally, the shareholders' equity, after considering minority interest, grew to SAR 1.54 trillion as of December 31, 2023, compared to SAR 1.38 trillion one year earlier.