Aramco Reports 15% Drop in Q3 Profit

Saudi Aramco reported a third-quarter profit of $27.5 billion, marking a 15% decrease from the previous year, attributed to lower oil prices and weakening refining margins. Revenues for the quarter were $111.1 billion, down from $113 billion in the same period last year. The company's profits for the first nine months of 2024 totaled $83.9 billion, a decline from $94.5 billion in 2023. Despite the profit drop, Aramco plans to distribute $31.05 billion in dividends, with a base dividend of $20.28 billion and a performance-linked dividend of $10.77 billion. The decline in profits reflects ongoing challenges in the oil market, including reduced crude prices and production cuts, as Saudi Arabia continues to produce below its maximum capacity. Aramco's financial performance is crucial for funding the Saudi government's Vision 2030 initiatives, aimed at diversifying the economy away from oil dependency.