Skip to content Skip to Search
Skip navigation

Aramco profits drop 19% to $31.9bn in Q1

Aramco CEO Amin Nasser Reuters/Hamad I Mohammed
President and CEO Amin Nasser oversaw the successful public listing of Saudi Aramco in 2019, the largest IPO in history
  • Net profit fell year on year, but has still exceeded market expectations
  • $19.5bn first-quarter dividend to be paid
  • Lower taxes and rise in other income helped offset drop, Aramco said

Saudi’s Aramco has reported a 19 percent drop in first-quarter profits year on year, mainly driven by lower crude oil prices.

Net profit at the oil group slipped to SR119.54 billion ($31.9 billion) for the first three months of 2023.

However, this was still 3.75 percent higher than the company’s performance in the final quarter of 2022 and exceeded market expectations.

Aramco said the drop was partially offset by lower taxes and a rise in finance and other income, according to a statement to Saudi Arabia’s Tadawul exchange.

Amin Nasser, president and CEO of Aramco, said: “The results reflect Aramco’s continued high reliability, focus on cost and our ability to react to market conditions as we generate strong cash flows and further strengthen the balance sheet.”

Saudi Arabia’s benchmark index was up 0.5 percent early on Tuesday, helped by a 4 percent jump in Aramco’s shares.

Saudi Arabia and fellow Opec+ members revealed production cuts of 1.66 million barrels per day from May to the end of the year, with prices continuing to drop amid concerns over economic growth and interest rate hikes.

The kingdom reported revenue of SR280.94 billion in the first quarter of 2023, with oil revenues down 3 percent to SR178 billion.

The International Monetary Fund’s latest World Economic Outlook predicted that headline GDP growth in Saudi Arabia would drop to 3.1 percent from record levels last year.

Across the quarter, Aramco expanded its downstream business with acquisitions in China and Korea. It also completed the $2.76 billion deal for US-based motor oil and lubricant maker Valvoline.

Nasser said plans to increase capacity would continue. “Our long-term outlook remains unchanged as we believe oil and gas will remain critical components of the global energy mix for the foreseeable future.”

He revealed plans to introduce performance-linked dividends in addition to the base dividend, which is currently distributed.

A Q1 dividend of $19.5 billion will be paid in the second quarter, according to the statement.

Latest articles

Men walk past an HSBC branch in Manama. HSBC Bank Middle East made pre-tax profit of $1.2bn in 2023

HSBC’s Middle East unit increases lending in Q4

HSBC’s Middle East subsidiary expanded its loan book in the fourth quarter, outperforming the bank’s other units. Customer lending at HSBC Bank Middle East was $20 billion on December 31, up $1.6 billion, or 8 percent, on three months earlier. Worldwide, HSBC’s customer lending fell by 2 percent over the same period. The Middle East […]

Abdullah Binghannam, deputy head of financing and investment at the Capital Market Authority, spoke on the second day of the forum in Riyadh

Saudi Arabia prods blue chips to list more shares

Saudi Arabia is prodding blue-chip companies on its stock exchange to offer more shares to the public as part of a drive to become a global financial centre.  Abdullah Binghannam, deputy head of financing and investment at the kingdom’s Capital Market Authority, told a markets forum in Riyadh on Tuesday that a regulatory framework was […]

Al Jaber and IAE representatives met in Paris and discussed ways to support climate change commitments

Take action to keep climate goal in reach, urges Al Jaber

The UAE consensus achieved at the Cop28 summit in Dubai set a clear roadmap for keeping global temperature rise to within 1.5C. Now the world must turn the plan into action and results, said Cop28 president Sultan Al Jaber.  Al Jaber told the International Energy Agency roundtable in Paris on Tuesday that all stakeholders must […]

Bahrain investments Manama skyline

Financial services help Bahrain to record $1.7bn in investments

Bahrain attracted more than $1.7 billion in investments last year through its government-backed investment company. The financial services sector was the main driver. The figure, released by the Bahrain Economic Development Board, was 55 percent up on 2022. The investments covered 85 local and international projects, which are forecast to create 5,700 jobs in Bahrain […]