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Saudi Aramco, the world’s most valuable oil producer, reported a 15% drop in third-quarter profits, citing reduced oil prices and weaker refining margins. The company’s net income fell from $32.58 billion in 2023 to $27.56 billion this year, as per its latest statement to the Saudi stock exchange. Despite this downturn, CEO Amin Nasser expressed confidence, highlighting strong free cash flow and Aramco’s commitment to establishing itself as a leader in global energy and petrochemicals.
Saudi Arabia, the world’s largest oil exporter, has scaled back its production to around nine million barrels per day (bpd), below its maximum capacity of 12 million bpd. This reduced output reflects a series of cuts by OPEC+ members since October 2022, with additional reductions of 2.2 million barrels extending through December 2023.
Aramco’s financial performance directly impacts Vision 2030, Crown Prince Mohammed bin Salman’s ambitious diversification plan for a post-oil economy. Revenues from Aramco support Saudi Arabia’s major projects, including NEOM, a futuristic mega-city, as well as new tourism and infrastructure initiatives. The company saw record profits in 2022 due to surging oil prices following the Russia-Ukraine war, but has since adjusted expectations with Brent crude hovering around $75 per barrel.
Analysts suggest the government anticipated the revenue dip, with revised fiscal projections and budgetary adjustments for potential deficits through 2027. Aramco’s stance on controlled production aligns with Saudi Arabia’s pledge for environmental reforms, including net-zero emissions by 2060, though the commitment faces scrutiny amid global climate concerns.
