Aramco's profit falls 14 percent on lower prices and sales

Saudi oil company Saudi Aramco's net profit fell 14.4 percent to USD 27.3 billion (CZK 634.5 billion) in the first quarter, in line with analysts' expectations. Lower oil prices and sales volumes were to blame. Despite weaker results, the company will pay a dividend for the first quarter. It announced this in a press release today.

Despite the fall in profit, the company will pay USD 31 billion in dividends for the first quarter. The Saudi government directly owns an 82.2 percent stake in the company and is heavily dependent on payments from it, which also include royalties and taxes.

Saudi Arabia is the world's largest oil exporter. However, it is spending billions of dollars to diversify its economy and seeking alternative sources of future growth. It therefore needs revenue from oil sales to fund its ambitious reform programme.

The country currently produces around nine million barrels per day, well below its capacity of 12 million barrels per day. Saudi Arabia is a member of the Organization of the Petroleum Exporting Countries (OPEC), which agreed with its allies last April to cut production by more than one million barrels per day. Saudi Arabia then announced a further voluntary production cut of one million barrels per day last June. The aim of the decisions is to support oil prices.

Aramco is the world's largest oil producer. It accounts for around 10 percent of global oil production.