Saudi Arabia's Aramco reports lower half-year profits as economic worries dampen energy prices
Saudi oil giant Aramco has reported half-year profits of $56.3 billion, down from the year before due to weakening volumes sold amid worries about the global economy
DUBAI, United Arab Emirates — Saudi oil giant Aramco reported half-year profits Tuesday of $56.3 billion, down from the year before amid worries about a slowing global economy.
Aramco, formally known as the Saudi Arabian Oil Co., said its overall revenue for the half-year was $220.7 billion, up from $218.6 billion the year before. Profits in 2023 were $61.9 billion, nearly $5 billion higher.
Despite the turmoil in the global economy, Aramco remains bullish on the future with a projected increase in demand from the aviation industry and from China.
“Growth in global oil demand is strong, reaching a record 103.2 million barrels a day in the first half of 2024, despite some headwinds,” Aramco CEO and President Amin H. Nasser told analysts on a conference call. “We expect further demand growth in the second half of the year.”
Aramco will pay dividends of $20.3 billion for the second quarter and a performance-linked dividend of $10.8 billion, the company said. It hopes its overall dividend for the year will be over $124 billion.
While a sliver of Aramco trades on the Tadawul, the vast majority of the firm is held by Saudi Arabia's government, fueling its expenditure and providing wealth to its Al Saud royal family.
Saudi Arabia, a leader in the OPEC cartel, has allied with Russia and others outside of the group to try to keep production down to boost global oil prices. Benchmark Brent crude traded around $77 a barrel on Tuesday after Japan's Nikkei stock market plunged 12.4% Monday in its worst single-day decline since 1987.
It marked the latest in a global
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