‎“Saudi Aramco” achieves of SR 112.8 billion profit during Q2‎

The net profit after zakat and tax of the Saudi Arabian Oil Company “Saudi Aramco” decreased to 112.8 billion riyals during the second quarter, compared to 181.6 billion riyals in the same quarter of last year, by 37.9%. This came after today’s announcement of the preliminary financial results for the period ending in June 30 (six months).

The operational profit amounted to 212.55 billion riyals during the second quarter, compared to 324.49 billion riyals in the same quarter of the previous year, a decrease of 34.5%.

As for total sales and revenues, they amounted to 402.56 billion riyals during the second quarter, compared to 562 billion riyals in the same quarter of the previous year, a decrease of 28%.

Net profit after zakat and tax during the 6-month period amounted to 232.35 billion riyals, compared to 329.67 billion riyals in the same period last year, a decrease of 29.5%.

Earnings per share in the current period amounted to 0.94 riyals, compared to 1.31 riyals in the same period last year.

Net income amounted to 112.81 billion Saudi riyals (30.08 billion US dollars) for the second quarter of 2023, compared to 181.64 billion Saudi riyals (48.44 billion US dollars) for the same quarter of 2022, and this decrease mainly reflects the impact of lower crude oil prices. and weak refining and chemicals profit margins. This was partially offset by lower rents on crude oil production, which is largely attributable to lower crude oil prices, lower average effective rents, and lower income and zakat taxes.

The reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter is due to net income of 112.81 billion Saudi riyals (30.08 billion US dollars) for the second quarter of 2023, compared to 119.54 billion Saudi riyals (31.88 billion US dollars). ) for the first quarter of 2023. This decrease is mainly due to weak refining and chemicals profit margins and lower crude oil prices. This was partly offset by a decrease in rents on crude oil production, which is largely due to a decrease in the average effective rent rate as a result of lower crude oil prices, lower income taxes and zakat.

Net income amounted to 232.35 billion Saudi riyals (61.96 billion US dollars) for the first half of 2023, compared to 329.67 billion Saudi riyals (87.91 billion US dollars) for the same period in 2022. This decline was primarily As a result of lower crude oil prices, and weak refining and chemicals profit margins. This was partially offset by the decrease in rents on crude oil production, which is largely due to the decrease in the average effective rent rate, the decline in crude oil prices, the increase in financing income and other income, and the decrease in income and zakat taxes.

Additional information:

– Due to the nature of Saudi Aramco’s business in the field of research, exploration, drilling and extraction of hydrocarbons (exploration and production), the consolidated income statement of Saudi Aramco does not include the item of gross profit.

– Other income related to sales amounted to 45.75 billion Saudi riyals for the second quarter of 2023 (86.31 billion Saudi riyals for the second quarter of 2022, 42.37 billion Saudi riyals for the first quarter of 2023). As a result, total revenue and other income related to sales amounted to 448.32 billion Saudi riyals for the second quarter of 2023 (648.37 billion Saudi riyals for the second quarter of 2022, 459.83 billion Saudi riyals for the first quarter of 2023).

– Other income related to sales amounted to 88.13 billion Saudi riyals for the first half of 2023 (136.20 billion Saudi riyals for the first half of 2022). As a result, total revenue and other income related to sales amounted to 908.15 billion Saudi riyals for the first half of 2023 (1,165.27 billion Saudi riyals for the first half of 2022).