Saudi Aramco reported a net profit of $36.3 billion for the third quarter. This was a 34.5 percent increase compared to the same period in the previous year. The state-backed energy giant attributed the rise to higher overall revenue, sales income and a financial gain from disposing of its equity interest in PRefChem.
Adjusted net income, which strips out certain items, rose nine percent to $31.2 billion from $28.6 billion a year earlier. Higher operating costs partly offset the revenue gains.
The company sold its stake in the Malaysian refining and petrochemicals venture to PETRONAS in September. Aramco declared a base dividend of $21.9 billion for the third quarter. This is a 3.5 percent year-on-year increase that will be paid in the fourth quarter.
President and CEO Amin Nasser said geopolitical uncertainty and attacks on key facilities continued to amplify the global energy supply crisis during the third quarter. He said the environment had serious implications for global energy security.
Cash flow from operating activities reached $38.7 billion, up from $36.1 billion a year earlier. Free cash flow climbed to $28.2 billion compared with $23.6 billion previously, while the gearing ratio stood at 5.5 percent at the end of September.
Return on average capital employed reached 22.1 percent on a rolling 12-month basis. For the first nine months of the year, net income totalled $101.5 billion, with capital expenditures reaching $35.8 billion.
Aramco advanced several major upstream projects during the quarter. These included the Jafurah phase two, the Fadhili Gas Plant expansion and the Dammam development project. Production also began at the Zuluf crude oil increment in October, which is expected to process up to 600,000 barrels per day before the end of the year.
The company said the East-West Pipeline continued to provide export flexibility amid shipping disruptions through the Strait of Hormuz. Aramco is also exploring overseas storage capacity and alternative export routes.
In the technology sector, Aramco completed a transaction with the Public Investment Fund after the quarter ended. It acquired a 49 percent stake in Humain. The deal involved AI assets and about $2.6 billion in cash contributions to expand the company’s digital capabilities.
Aramco also signed a shareholders agreement with Saudi Arabian Mining Co. To establish a joint venture for mineral exploration and hard-rock mining.
