The profit of the Saudi state oil group Saudi Aramco fell by almost a quarter in the third quarter of this year. Lower oil prices and production cuts mainly caused the profit decline.
The world’s largest oil exporter recorded significantly lower profits in the first two quarters of 2023.
Despite the decline, the oil producer still achieved a quarterly profit of 32.6 billion dollars. However, in the same period a year earlier, a profit of over 42 billion dollars was recorded due to the substantial price increases in the third quarter of 2022.
In addition to falling oil prices, the state-owned company also deals with lower production. Saudi Arabia is cutting oil production to boost prices. Last weekend, it was announced that the country will maintain a production limit of more than 1 million barrels per day until the end of the year.
Last year, Saudi Aramco made a record profit of $161 billion thanks to sharply higher 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.
Saudi Crown Prince Mohammed bin Salman wants to use that money to finance his sweeping economic and social reform program known as Vision 2030. That program aims to reduce the country’s dependence on fossil fuels.