142 Saudi Arabia’s state oil giant Aramco reported a significant 23% decrease in net profit for the third quarter ending on September 30, amounting to $32.6 billion, primarily attributed to the impact of lower crude oil prices and reduced volumes sold, as disclosed by the company on Tuesday. The latest net profit figure marked a substantial decline from the $42.4 billion reported during the same period the previous year, although it surpassed analyst expectations, which were estimated at approximately $31.8 billion. Aramco’s free cash flow also took a hit, plummeting to $20.3 billion, less than half of the $45 billion reported in the third quarter of 2022. Despite the challenging financial landscape, Aramco confirmed its commitment to distribute a $29.4 billion dividend to both investors and the Saudi government. The dividend payout includes a base amount of $19.5 billion scheduled for the fourth quarter, along with an additional $9.9 billion linked to performance, which will be disbursed in the same quarter based on the combined full-year 2022 and nine-month 2023 results, as stated in the company’s earnings release. Capital expenditure saw an increase this quarter, rising to $11.02 billion compared to $9.03 billion in the third quarter of the previous year. Aramco’s expansion plans involve finalizing an agreement for its first international liquefied natural gas (LNG) investment and its intention to enter the South American market through a downstream retail acquisition, according to the company. Aramco’s decreased profitability aligns with the industry-wide trend, with other energy giants such as ExxonMobil and Chevron also experiencing substantial annual declines in the third quarter due to the ripple effects of weaker oil prices in the sector. Saudi Arabia, as the leading producer and a key player in the Organization of the Petroleum Exporting Countries (OPEC), has implemented various production cuts, both in line with the formal OPEC policy and through individual voluntary reductions. The country continues to adhere to a voluntary 1 million barrels per day cut in oil output until the end of the year and plans to reassess this production strategy in December. Aramco’s President and CEO Amin Nasser emphasized the company’s resilient financial performance, reaffirming Aramco’s ability to consistently generate value for its shareholders while identifying new opportunities to adapt and meet customer needs, as highlighted in an accompanying statement. Fortune magazine previously recognized Aramco as the second-largest company globally by revenue, trailing behind Walmart and preceding tech giants Apple and Amazon. The ranking followed Aramco’s announcement of its record-breaking annual profit for 2022, exceeding $160 billion, which was the highest ever recorded for a publicly-listed company, supported by the surge in oil prices amid Russia’s invasion of Ukraine earlier in the year. You Might Be Interested In Despite $157B Berkshire Cash Reserves, Final Deal Falls Through for Charlie Munger and Warren Buffett Power Plant Handover Set for Tanzania, Burundi, and Rwanda $5 million in pre-series seed funding raised by Nutrifresh Toyota Motor keeps up the push to prove it can embrace new technology Becamex IDC Surpasses Profit Targets, Achieves Record Highs in 2023 Allstate Rebounds in Q1 Financials