Saudi Aramco reports $26.9B profit in third quarter, down slightly over lower oil prices

Core Insights - Saudi Aramco reported a profit of $26.9 billion in Q3, a slight decrease from $27.5 billion in the same period last year, amid depressed global energy prices [1][3] - The company's overall revenue for Q3 was $111 billion, down from $123 billion year-over-year, slightly exceeding analysts' expectations [3] - Aramco's performance reflects broader industry trends, particularly following OPEC+'s recent decision to halt planned production increases due to supply concerns [2][5] Financial Performance - Q3 profit of $26.9 billion compared to $27.5 billion in Q3 last year [1][3] - Total revenue for Q3 was $111 billion, down from $123 billion year-over-year [3] - Under IFRS accounting standards, Aramco reported a net profit of $27.9 billion based on adjusted bookkeeping [4] Market Context - Benchmark Brent crude prices are hovering around $65 per barrel, close to a four-year low [2] - OPEC+ decided to increase production by 137,000 barrels starting in December but paused further adjustments for early 2024 due to seasonal factors [5] Strategic Importance - Aramco's revenues are crucial for funding Saudi Arabia's development plans, including hosting the FIFA 2034 World Cup [6] - The country benefits significantly from its low production costs, with a $10 increase in oil prices potentially yielding an additional $40 billion annually [6] Ownership and Future Plans - The Saudi government holds the majority of Aramco's shares, with a partial public listing occurring in late 2019 [7] - There are considerations for offering more shares publicly in the future [7]