Saudi Arabia’s national oil company posted a 38% drop in quarterly profit due to lower energy prices and production cuts, but boosted its dividend by more than half—highlighting the kingdom’s dependence on oil revenues.
Saudi Arabian Oil Co., known as Aramco, said Monday that its net profit fell to 112.81 billion Saudi riyals, roughly $30.08 billion, for the quarter ending June 30, from $48.44 billion in the same period last year when it benefited from soaring oil prices after Russia invaded Ukraine.
The second-quarter profit, which came slightly above the $29.8 billion expected by 15 analysts in an Aramco-provided poll, is the third-largest percentage drop in income for the company since it went public in December 2019. The previous large falls in quarterly profits came in 2020 when oil prices slumped amid the Covid-19 pandemic. Aramco is one of the most valuable companies globally, with a market cap of about $2 trillion, briefly capturing the top spot from Apple last year.
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