Saudi Aramco remains committed to its investment program despite profits being crimped by falling oil prices and volumes. CFO Ziad al-Murshed emphasized the value-accretive nature of the firm’s investments during the Q3 earnings call on 5 November, noting that they create significant shareholder value and “we do not want to be in a position where we have to cut those projects in down cycles.”
Oil markets have certainly softened through 2024 – Aramco’s average realized crude oil price of $79.30/B for Q2 was down 11% year-on-year – although they remain far stronger than during the 2015-2017 downturn, let alone the Covid era. Meanwhile hydrocarbon production dipped to 12.7mn boe/d from 12.8mn boe/d a year earlier, implying lower output of gas and NGLs, amplifying the impact of lower prices. Gross revenues and income dropped 5% as a result to $124bn for the quarter. Net income was down 15% year-on-year at $27.56bn. (CONTINUED - 968 WORDS)
