Saudi oil giant Aramco's net income drops 15.3% in Q3

By Basak Erkalan

Saudi Arabia's national oil company Aramco's net income fell by around 15.3% during the third quarter of 2024, in line with analyst consensus, according to its financial results released on Tuesday.

The company profited around $27.6 billion in the July-September period of this year, compared to $32.6 billion in the same quarter last year.

The revenue for the period reached around $103.3 billion, compared to $122.1 billion for the same quarter of 2023.

Aramco attributed the profit drop to lower crude oil prices and weakened refining margins.

This was partially offset by a reduction in selling, administrative, and general expenses, driven by gains from derivative instruments and a decrease in production royalties reflecting lower crude oil prices and a reduced average effective royalty rate compared to the same quarter last year, the company said.

Saudi Aramco's President and CEO, Amin H. Nasser, said, "Aramco delivered robust net income and generated strong free cash flow during the third quarter, despite a lower oil price environment."

"We also progressed our upstream developments, strengthened our downstream value chain and advanced our new energies program as we continue to invest through cycles," Nasser said.

He emphasized that by focusing on strategic growth opportunities and capturing value through integration and diversification, they intend to maintain positive momentum and strengthen their position as a leading global energy and petrochemicals player.