Saudi Aramco reports 5% drop in Q1 profit amid lower oil prices
Saudi Aramco, the world's largest oil producer, reported a 5% year-on-year fall in first-quarter net profit due to lower crude oil prices and reduced production.According to a business statement released Sunday, the state-owned energy giant's net income for the three months ended March 31 was $26 billion, down from $27.3 billion the previous year.
The outcome was somewhat above than analysts' projections of $25.3 billion.
The company's free cash flow fell to $19.2 billion from $22.8 billion in the first quarter of 2024, while cash flow from operating activities fell to $31.7 billion from $33.6 billion the previous year.
These results show persistent difficulty for Aramco, as global oil prices remain low and demand weakens due to trade tensions.
In another evidence of financial duress, Aramco affirmed that it will keep its sharply reduced performance-linked dividend of $200 million for Q1 2025, payable in the second quarter.
This follows a significant decrease from $10.2 billion in Q4 2024, indicating a conservative approach to capital management.
Its base dividend for the first quarter increased 4.2% year on year to $21.1 billion.
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