Saudi oil giant Aramco’s net income declines 19% in 1Q23

The net income of Saudi Arabia’s state-backed oil company Aramco declined around 19% during the first quarter of 2023 due to lower global crude oil prices, mainly driven by macroeconomic events contributing to market volatility, according to the company’s financial results on Tuesday.

Aramco said it gained $31.9 billion in the January-March period of this year, compared to $39.5 billion in the same period last year.

The company increased its net profit by 82% in the first quarter of last year compared to the previous year, taking advantage of high oil prices to become the most valuable company in the world, surpassing Apple for the first time since 2020.

Although the world’s largest oil company attributed the negative results to lower crude oil prices, it also said the company is ‘well positioned to withstand fluctuating commodity prices through its low-cost upstream production and strategically integrated downstream operations.’

The price of international benchmark Brent crude declined almost 3% in the first three months of the year, with the highest rate standing at $89.09 a barrel and the lowest at $70.06 a barrel.

‘Our growth strategy remains on track, and we made significant progress on the strategic expansion of our downstream business during the quarter, announcing a key acquisition in the US as well as important investments and partnerships in China and South Korea,’ Aramco’s CEO Amin Nasser was quoted as saying in the statement.

The company’s three-month revenue also declined from around $124.5 billion to approximately $111.3 billion, recording a 10.6% fall from the same period last year.

• international benchmark Brent crude declined almost 3% in the first three months of the year