Saudi Aramco Faces Profits Plunge Amid Low Oil Prices

Saudi Arabian oil giant Aramco experienced a significant decline in its third-quarter profits, which totaled $27.5 billion, reflecting a 15% decrease compared to the same period last year. The company attributed this decline to lower crude oil prices and weakened refining margins, as global oil prices remained depressed. In the first nine months of 2024, profits reached $83.9 billion, a decrease from $94.5 billion in 2023. Revenues for the third quarter were reported at $111.1 billion, down from $113 billion a year prior. Despite the drop in profits, Aramco declared dividends amounting to $20.28 billion for the quarter and a performance-linked dividend of $10.77 billion. The company aims to maintain an overall annual dividend exceeding $124 billion. The market value of Aramco stands at $1.7 trillion, solidifying its position as one of the world's most valuable companies. Additionally, the declines in revenue and profit are reflective of wider trends within the global oil industry, exacerbated by diminishing demand due to economic slowdowns, particularly in China. These fluctuations in oil prices have prompted concerns within Saudi Arabia, as the government grapples with the potential need to scale back various economic ambitions, including substantial projects like the futuristic city of Neom. Activists have raised alarms over Aramco's profits, calling attention to the environmental implications of fossil fuel usage, underlining a growing tension between economic objectives and climate change agendas within the industry.