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Aramco's results serve as a bellwether for the wider oil
industry, which is still digesting the OPEC+ decision this
weekend to halt planned production increases in the first
quarter of next year over supply worries. Benchmark Brent crude,
at just under $65 a barrel, has been fluttering near a four-year
low.
In filing on Riyadh’s Tadawul stock exchange, Aramco, formally
known as the Saudi Arabian Oil Co., reported overall revenue of
$111 billion in the third quarter, compared with $123 billion in
the same period last year. Its profit in the third quarter last
year was $27.5 billion.
The figures slightly beat analysts’ projections.
“Aramco’s ability to adapt to new market realities has once
again been demonstrated by our strong third quarter
performance," Aramco President and CEO Amin H. Nasser said in a
statement. “We increased production with minimal incremental
cost, and reliably supplied the oil, gas and associated products
our customers depend on.”
Under IFRS accounting standards, Aramco reported a net profit of
$27.9 billion based on an adjusted bookkeeping.
On Sunday, OPEC+ met and decided to increase its production by
an additional 137,000 barrels of oil beginning in December.
However, it said other adjustments planned in January, February
and March of next year would be paused “due to seasonality.”
OPEC+ includes the core members of the cartel, as well as
nations outside of the group led by Russia.
Aramco provides money crucial for Saudi Crown Prince Mohammed
bin Salman ’s expansive development plans for the kingdom,
including hosting the upcoming FIFA 2034 FIFA World Cup.
Saudi Arabia’s vast oil resources, located close to the surface
of its desert expanse, make it one of the world’s least
expensive places to produce crude. For every $10 rise in the
price of a barrel of oil, Saudi Arabia stands to make an
additional $40 billion a year, according to the Institute of
International Finance.
The Saudi government owns the vast majority of the firm’s
shares. Saudi Aramco publicly listed a sliver of its worth back
in late 2019 and has weighed offering more shares publicly.
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