Aug. 7 (UPI) — Saudi Aramco, the state oil giant of OPEC leader Saudi Arabia, on Monday reported a net profit for the second quarter that was nearly 40% below year-ago levels because of lower energy prices during the period.
Net income for the Saudi oil giant totaled $30 billion for the second quarter of the year, down from the $48.4 billion reported during the same period in 2022. It sold its products for the equivalent of $78.80 per barrel, compared to $113.20 per barrel during the same period in 2022.
Saudi Arabia needs oil priced at around $80 per barrel to balance its books. After the kingdom took the unilateral decision to extend a production cut of 1 million barrels per day for another month, oil prices are closer to $85 per barrel.
Amin Nasser, the president and CEO at Aramco, said he’s optimistic about the second half of the year, even if higher crude oil prices create headwinds for the global economy.
“At Aramco, our mid- to long-term view remains unchanged,” he said. “With a recovery anticipated in the broader global economy, along with increased activity in the aviation sector, ongoing investments in energy projects will be necessary to safeguard energy security.”
Demand globally is holding up, even if oil prices are elevated. On travel, U.S data show 2.7 million people moved through airport security on Sunday, a 12% increase from year-ago levels. A metric used to gauge demand for gasoline, meanwhile, was up 3% from this time last year.
On its ongoing investments, Aramco said it was maintaining its largest spending program to date, with support from an $11 billion refinery expansion in the kingdom.
Economists at the Organization of the Petroleum Exporting Countries said that, despite a slower expansion than last year, the Saudi economy is moving in the right direction.
“Growth in the near-term is expected to remain strong, with both the oil and the non-oil sector supporting the momentum and with a strong commitment to government reform programs,” they wrote in their July report.
Saudi production is close to 10 million barrels per day, making it one of the global leaders in oil production alongside Russia and the United States.
