Oil giant Saudi Aramco posts 38% drop in second-quarter profit as lower prices bite

Oil giant Saudi Aramco posts 38% drop in second-quarter profit as lower prices bite Saudi Aramco, the world's largest oil company, reported a 38% drop in second-quarter profit on Monday, as lower oil prices and production cuts weighed on results. The company's net income fell to $28.8 billion in the second quarter, from $45.2 billion in the same period a year earlier. Revenue fell to $110.9 billion from $135.8 billion.

The decline in profit was driven by a 17% drop in the average realized price of crude oil, which fell to $101.3 per barrel in the second quarter from $122.7 per barrel in the same period a year earlier. Aramco also produced less oil in the second quarter, as it complied with production cuts agreed to by OPEC and its allies. Despite the profit drop, Aramco's results were still better than analysts' expectations. The company's net income was still above the $28.5 billion that analysts polled by Refinitiv had forecast. Aramco's CEO, Amin Nasser, said that the company was "confident in the long-term fundamentals of the oil and gas industry" and that it was "well-positioned to meet the growing global demand for energy." The profit drop at Aramco is a sign of the challenges facing the oil industry. Oil prices have been under pressure in recent months due to a number of factors, including rising interest rates and concerns about a global recession. However, analysts believe that oil prices are likely to rebound in the second half of the year. This would help to boost Aramco's profits and could lead to a dividend increase for the company.