Members of Media chat before the start of a press conference by Aramco in the Plaza Conference Center in Dhahran, Saudi -Arabia November 3, 2019.
Hamad I Mohammed | Reuters
Saudi Aramco’s net profit fell by 5% in the middle of lower oil prices and production.
Net Inome For the three months until March 31, $ 26 billion, a decrease of $ 27.3 billion for the same period, left the company, the company reported. The figure was slightly above the expectations of analysts of $ 25.3 billion.
Aramco announced his free cash flow for the quarter to $ 19.2 billion, compared to $ 22.8 billion in the first quarter of 2024, and the cash flow of operational activities at $ 31.7 billion billion until last year $ 33.6 billion.
The figures for continuous tension for the balance of the Saudi state oil giant, because raw prices no sign of recover and the global demand slows down in accordance with trade in trade.
The company announced in March that it was a Dividend payment for the fourth quarter from 2024 to $ 200 million down of $ 10.2 billion of the previous quarter, and repeated that $ 200 million figure for this year’s crucity quartal, to be paid in the second quarter.
The basic dividend of the first quarter excluding the performance -based payments rose by 4.2% on an annual basis to $ 21.1 billion. But if in total the Association, the dividend of $ 31 billion decreased in the same period that the year now left to $ 21.36 billion, due to the reduction of his performance -related element.
“Global Trade Dynamics Fetched Energy Markets In the first quarter of 2025, with economic uncertainty that influences oil prices,” said Amin Nasser of Aramco in a statement at the WinSt report.
“In this context, Aramco’s robust financial performance demonstrated the unique scale of the company, the reliability and flexibility, the value of the Lowcost activities … Such periods also emphasize the importance of disciplined capital planning and version while we continue.”
Nasser added: “In volatile times, Aramco’s resilience supports financial performance and our sustainable and progressive basic dividend.”
Beerarish Oil Market Vooruit
The massive dividend reduction relieves the pressure on Aramco itself, but means less income for the Saudi government, because it is confronted with broadening deficits and increasing debts as a result of expensive mega projects and lower oil prices.
The Kingdom also limited its oil income potential by keeping months of coordinated OPEC+ production -cuts intended to stabilize the market. That policy changed dramatically after Saudi Aarabia and several of his OPEC+ exterminations announced to shock the acceleration for the production of plans in April, even when markets and rough prizes refuel on the news of global rates set up on the US.
At the beginning of May, OPEC+ again increased its production objective for June 411,000 barrels per day-the second consecutive month of accelerated settlement of the 2.2 million barrel per day voluntary cuts that have been present since the beginning of 2024.
Banks and energy agencies have steadily reduced their oil price front views for the year, anticipating large delivery sizes and weak demand. The last prediction of the US Energy Information Administration sees Brent crude oil of an average of $ 65.85 per barrel this year, while Morgan Stanley has reduced its price views in the second half of this year to $ 62.50 per barrel
Morgan Stanley also predicts a market size of a maximum of 1.1 million barrels per day in the second half of 2025 – an increased 400,000 BPD compared to his previous previous excess call.
Goldman Sachs now sees Brent on average $ 60 per barrel in the Remaiter of 2025, combed to $ 63 previous and $ 56 per barrel in 2026, shared at $ 58 previous.
Saudi Aarabia needs oil with more than $ 90 per barrel to balance his budget, estimates the International Monetary Fund. Goldman Sachs in mid -April warned that Brent crude oil at $ 62 per price for the price prediction at the time of the time of the Kingdom 2024 budget deficiency of $ 30.8 billion could double.
“In Saudi Aarabia we estimate that we will see Probablay the shortage rise from around $ 30 to $ 35 billion to around $ 70 to $ 75 billion, if oil prices would stay around $ 62 this year,” said Farouk Saussa, Mena Economist at Goldman Sachs Sachs. The bank’s prediction for the rest of 2025 is now at $ 60 per barrel.
“That means more loans, Probablay means more cuts on expenses, IT Probablay means more sales of assets, all the above,” Saussa told CNBC last month. “And this will have an impactbot on domestic financial circumstances and possibly even internationally.”
