Saudi oil giant Aramco's first quarter net profit dropped 19% from a year earlier to 119.54 billion riyals (USD31.88 billion), said the company.
Profit still beat analysts' median forecast of USD30.8 billion, according to Refinitiv data, and Aramco said the decline was partially offset by lower taxes including in the zakat Islamic tax and a rise in finance and other income. Net profit was 3.75% higher than in the fourth quarter.
Yousef Husseini, head of materials at EFG Hermes Research, said there was no material surprise in Aramco's results, "with the company performing in line with its ability at prevailing oil prices and taking into account production cuts."
"But, the real positive surprise, which we think will be well received by the market, is that Aramco finally decided to up its dividend policy and include a clear link to its performance."
The world's top oil exporter made a record profit of over USD161 billion for 2022 on higher energy prices and production.
Last month, Saudi Arabia and other OPEC+ producers announced surprise oil production cuts from May, initially driving up prices, but global economic uncertainty and an unclear demand outlook continue to weigh on prices.
We remind, Saudi Aramco has signed 59 corporate procurement agreements (CPAs) worth a potential total of USD11 billion with up to 51 domestic and international manufacturers, as a part of its coveted in-kingdom total value add (IKTVA) localisation programme.
mrchub.com