Falling prices, volumes sink Saudi Aramco Q3 profits by 23%

(Sharecast News) - Saudi Aramco saw third-quarter profits sink by almost a quarter due to falling oil prices and lower volumes sold, though the mostly state-owned oil company did still beat analysts' forecasts. Net income for the three months to 30 September totalled $32.6bn, down 23.2% on the $43.4bn made the year before, as the average realised crude price sunk to $89.30 a barrel, down from $101.70 previously.

However, the company said the decline was partially offset by a reduction in production royalties. Company-compiled consensus was pointing to a net income figure closer to $31.8bn.

Cash flow from operating activities came in at $31.4bn, down from $54bn the year before.

"Our robust financial results reinforce Aramco's ability to generate consistent value for our shareholders, and we continue to identify new opportunities to evolve our business and meet the needs of customers," said Aramco's president and chief executive Amin H Nasser.

During the quarter, Aramco made its first international investment in liquefied natural gas to capitalise on rising demand, and announced plans to enter the South American market through a downstream retail acquisition.

The company, the world's second largest by revenue behind Walmart, declared a third-quarter base dividend of $19.5bn, in line with the second-quarter payout.