Saudi Aramco Posted Year-on-Year Drop in Revenues

SEATTLE (Oil Monster): Saudi Aramco posted dip in earnings during the second quarter of the year, when compared with the same quarter a year before, mainly due to lower crude oil prices, despite higher trading volumes. The lower refined chemical products prices too contributed to the decline.

The oil major reported an adjusted net income of $24.5 billion during the three-month period ending June this year. The second quarter revenues dropped during the quarter. This is the tenth consecutive quarter of declining profits by the company.

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Commenting on the future outlook, Aramco CEO Amin Nasser said that the company is confident about achieving its full year guidance of $52 billion to $58 billion for the current year. The oil demand in the second half of the year will be more than two million barrels per day higher than the first half, he said.

The capital spending by the company picked up slightly during the quarter. Despite fall in revenues, the company reiterated plans for further accelerated capital spending in the forthcoming quarters.

Saudi Aramco highlighted the company’s ongoing efforts to cut costs across its upstream and downstream business portfolios. Additionally, the company plans to focus heavily on gas production, aiming to achieve an increase of 60% by 2030, upon comparison with the baseline 2021 levels.