BAKU, Azerbaijan, November 23. Saudi Aramco's net income in the third quarter of 2023 totaled $32.6 billion, Trend reports.
As such, the company's income in the reporting period decreased by 23.1 percent, compared to the same period last year ($42.4 billion).
The company noted that the decline primarily results from the influence of reduced crude oil prices and sales volumes. At the same time, this was partially counteracted by a decrease in production royalties, primarily influenced by a lower average effective royalty rate, decreased crude oil prices, and reduced sales volumes.
According to Aramco's financial statement, the company's net income for the first nine months of the current year also decreased by 27.4 percent - from $130.3 billion to $94.5 billion.
"Aramco’s results of operations and cash flows are primarily driven by market prices and volumes sold of hydrocarbons as well as refined and chemicals products. Ongoing economic uncertainty resulted in lower prices for hydrocarbons and lower refining and chemicals margins, compared to the same period in 2022," the company added.
Meanwhile, in January 2023, Aramco received a payment of $4.2 billion as part of its financing arrangement with the Jazan Integrated Gasification and Power Company. This marks the second payment of three expected in this transaction, with the remaining $0.5 billion anticipated by year-end.
Additionally, Aramco settled the deferred consideration related to the SABIC acquisition, making payments totaling $15.7 billion, $11.0 billion, and $4.5 billion. These payments resulted in a full settlement of the deferred consideration, leading to a decrease in total borrowings and cash and cash equivalents, along with a gain of $1.5 billion.