Saudi Aramco's quarterly profit fell 38 percent, but beat estimates

Saudi Aramco, the oil company owned by the Saudi state, saw its net profit fall 38 percent year on year in the second quarter to 112.81 billion riyals (664 billion Kč, or 30.07 billion dollars). The result reflected lower oil prices and lower margins at refineries. The company said this in a statement today. However, the result was better than expected. Other major companies in the sector are also facing a sharp decline.

Analysts surveyed by the company itself had expected net profit of 29.8 billion dollars. For the first half of the year, net profit fell to 232.35 billion riyals from 329.67 billion riyals.

The company's chief executive, Amin H. Nasser, said that demand remained strong despite difficulties in the global economy. He expects demand from China to continue growing and to support the current market recovery. He said the recovery in aviation should also help.

A year ago, oil prices were significantly higher because of the impact of the Russian invasion of Ukraine. Western countries imposed a series of anti-Russian sanctions in response, raising concerns that there would not be enough commodities on the market. Prices are now lower partly because markets have calmed and partly because global economic growth has slowed considerably and demand has fallen.

British oil company BP had to make do with a second-quarter profit that was 70 percent lower year on year. Its British competitor Shell and French oil giant TotalEnergies also reported significantly lower profits than a year earlier. Similarly, the profit of US giant ExxonMobil fell 56 percent year on year in the second quarter.

Saudi Aramco is the world's largest oil company. It is among the world's five most valuable companies, alongside Apple, Microsoft, Alphabet and Amazon. It accounts for roughly ten percent of global oil production.