The profit of the Saudi state oil group Saudi Aramco fell sharply in the second quarter compared to a year earlier, mainly due to lower oil prices. Profits fell by 38 percent, but there was still an amount of more than $ 30 billion left for the world’s largest oil exporter.
In addition to the lower oil prices, the company also has to deal with lower production. Saudi Arabia is cutting oil production to drive up prices. Last week it was announced that daily production would also be reduced by 1 million barrels per day in September. The Saudis may cut production even deeper to prop up oil prices.
Saudi Arabia currently produces about 9 million barrels of oil daily (159 litres), while the daily capacity is about 12 million. The country is investing to increase that production capacity to 13 million barrels in 2027.
Last year, Saudi Aramco posted a record profit of $ 161 billion thanks to sharply increased oil prices due to the war in Ukraine. The dividend paid by the state-owned company is an essential source of income for the Saudi government, which owns more than 90 percent of the shares.