Saudi Aramco Q3 Profit Dips Amid Lower Oil Prices Despite Production Increase

Saudi Aramco reported a slight decline in third-quarter net profits to approximately $27 billion, primarily due to lower oil prices and reduced revenue, marking its 11th consecutive quarterly decrease. Despite the drop, the company beat analysts' expectations on adjusted profits and revenues, supported by increased production at minimal additional cost and strategic investments such as acquiring a greater stake in Petro Rabigh and securing a minority holding in AI firm HUMAIN. The global oil market remains challenging, with crude prices near multi-year lows amid OPEC+ output adjustments and economic uncertainties, although geopolitical tensions have helped prevent steeper price declines. Aramco raised its 2030 sales gas production target to about 80% above 2021 levels, aiming to boost total gas and associated liquids production to around 6 million barrels of oil equivalent per day. The company also advanced major projects including the $11.1 billion Jafurah midstream deal and the Fujian refining and petrochemical venture with Sinopec, reflecting its focus on upstream capacity and technology-driven growth. Aramco declared a base dividend of $21.1 billion and a performance-linked dividend of $0.2 billion, underscoring solid cash flow despite the challenging oil price environment.