Lower oil prices has hit a blow on Saudi Aramco’s earning with a 19 per cent drop in quarterly profits compared to the same period in 2022.
This according to report is its first year-over-year dip for the company since 2020.
Despite that decline, Aramco primarily owned by the Saudi government is still among the world’s most profitable oil producers.
Its first quarter profit of $31.9 billion, down from $39.5 billion a year earlier is nearly three times larger than the $11.4 billion earned by ExxonMobil Corp., the biggest US oil company.
Aramco also beat expectations for a $30.5 billion profit, forecast by analysts polled by Reuters which is good news for shareholders.
The company announced that it would pay its first-quarter dividend of $19.5 billion in the second quarter.
Oil prices have fallen worldwide, with the price of Brent crude down almost 25 per cent over the past year, mostly due to European Union and US efforts to combat inflation, including recent interest rate hikes.