Aramco Q3 profit rises 34.6% on oil prices, PRefChem stake sale
Saudi Aramco reported a 34.6% year-on-year rise in Q3 net profit to 135.9bn riyals, helped by higher oil prices and a 25.9bn riyal gain from selling its PRefChem stake.
The story in focus
Saudi Aramco reported a 34.6% year-on-year rise in third-quarter net profit to 135.9 billion riyals, helped by higher oil prices and a 25.9 billion riyal gain from selling its stake in the PRefChem joint venture to Petronas.
- Net profit rose to 135.9bn riyals from about 101bn a year earlier, Aramco said.
- The result included a 25.9bn riyal gain from selling its PRefChem stake to Malaysia's Petronas.
- Adjusted net income was nearly 117bn riyals, up 9% year on year but down about 7% from Q2.
- Aramco's board approved a Q3 base dividend of $21.9bn, up 3.5% year on year.
- CEO Amin Nasser said attacks on energy facilities amplified the global energy supply crisis.
What drove the profit
Aramco said the annual increase was driven by higher prices for crude oil and refined and chemical products, partially offset by lower sales volumes. Revenue rose to $140.5 billion from $111.6 billion a year earlier.
The profit figure included a 25.9 billion riyal gain from selling its stake in the PRefChem refining and petrochemicals joint venture to Malaysia's Petronas.
Operational pressures
The company reported the results amid attacks on Saudi energy infrastructure and disruption to shipping through the Strait of Hormuz. Aramco said it temporarily shut its East-West pipeline after a pumping station was damaged.
CEO Amin Nasser said geopolitical uncertainty and attacks on key facilities continued to amplify the global energy supply crisis. He said Aramco is exploring additional overseas storage capacity and alternative export routes.
Dividend and outlook
Aramco's board approved a third-quarter base dividend of $21.9 billion, up 3.5% year on year, to be paid in the fourth quarter. Capital expenditure was $10.5 billion, down from $12.6 billion a year earlier.
The company said production started at the Zuluf crude oil increment project in October, while major upstream projects including Jafurah phase two remain on track. Saudi Arabia revised its projected 2026 budget deficit to 245 billion riyals, or 4.9% of GDP.
How did Aramco's Q3 profit compare with analyst forecasts?
Aramco's adjusted net income beat a median forecast of $30.66 billion from 12 analysts, according to Reuters, which cited consensus estimates shared by the company.
Sources & further reading
- Saudi Aramco profits jump 35% despite attacks on oil facilities ↗Euronews.com
- Aramco posts 34% jump in third-quarter profit despite attacks on energy infrastructure | The National ↗thenationalnews.com
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