Saudi Aramco posted a marginal increase in third-quarter profits, supported by higher production levels despite persistent weakness in oil prices.
The oil giant reported an adjusted net income of SAR 104.92 billion for the period, outpacing analysts’ expectations compiled by LSEG, which stood at SAR 98.47 billion. Revenue reached SAR 418.16 billion, also beating the consensus estimate of SAR 411.26 billion.
Aramco’s Chief Executive Officer, Amin Nasser, highlighted that increased production was achieved at minimal additional cost while reliably serving its customers with essential energy products, enabling the company to sustain solid quarterly earnings growth.
Aramco’s free cash flow also improved to $23.6 billion from last year’s $22 billion. The company’s board declared a base dividend of $21.1 billion along with a performance-linked dividend of $0.2 billion, both scheduled for payout in the fourth quarter.
The earnings come as the global oil landscape continues to challenge energy producers. Oil prices have fallen more than 6% so far this year through September, except for a brief rally in the second quarter on the back of geopolitical tensions. U.S. West Texas Intermediate spot prices have declined over 16% year-to-date, while Brent crude has shed over 12%, according to FactSet.
On the corporate front, Aramco recently expanded its portfolio by completing the acquisition of a 22.5% interest in Petro Rabigh from Japan’s Sumitomo Chemical, elevating its total stake to approximately 60%. According to Reuters, the deal was worth about $701.8 million.
In addition, Aramco secured a minority holding in artificial intelligence company HUMAIN, which counts Saudi Arabia’s Public Investment Fund as its majority shareholder. Nasser noted that the investment is viewed as a strategic move to bolster Aramco’s innovation objectives and position the company within the essential and rapidly advancing AI sector.
