Lower oil prices and volumes impact earnings
- Saudi Aramco’s quarterly profit falls 23% due to lower oil prices and volumes
- Company maintains dividend payout at previous quarter’s level
- Free cash flow declines to $20.34 billion from $44.97 billion
- Gearing ratio improves to minus 7.6% from minus 7.9%
- Saudi Arabia extends output cuts to boost prices
Saudi Arabia’s national oil company, Saudi Aramco, has reported a 23% decline in quarterly profit due to lower energy prices and volumes sold. The company’s net profit for the three months ended in September was $32.58 billion, down from $42.43 billion a year earlier. Despite the decrease, Aramco has maintained its dividend payout to shareholders at the previous quarter’s level, with a base dividend of $19.51 billion and a performance-linked dividend of $9.87 billion. Free cash flow also declined to $20.34 billion from $44.97 billion in the same period last year. However, the company’s gearing ratio improved to minus 7.6% as of September 30. In an effort to boost prices, Saudi Arabia, the de facto leader of OPEC, has announced an extension of output cuts of 1 million barrels a day until the end of the year. Aramco remains optimistic about the long-term increase in energy demand and continues to invest in its growing portfolio through its largest capital program in history.
Factuality Level: 8
Factuality Justification: The article provides factual information about Saudi Aramco’s quarterly profit, dividend payout, free cash flow, and revenue. It also includes information about Saudi Arabia’s decision to extend output cuts and the current crude oil prices. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. However, it lacks in-depth analysis and context about the factors affecting Aramco’s profit and the overall oil market.
Noise Level: 7
Noise Justification: The article provides information on Saudi Aramco’s quarterly profit, dividend payout, free cash flow, and revenue. It also mentions the extension of output cuts by Saudi Arabia. However, it lacks analysis of long-term trends or antifragility. It does not hold powerful people accountable or explore the consequences of decisions. The article lacks scientific rigor and intellectual honesty as it does not provide evidence or data to support its claims. It also does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the financial performance of Saudi Arabian Oil Co. (Aramco), which is a major player in the global oil market. The company reported a fall in quarterly profit due to lower energy prices and volumes sold in the period. This information may impact the stock market and investors in the oil industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article does not describe any extreme events. It focuses on the financial performance of Aramco and the factors affecting its profit, such as lower energy prices and volumes sold.
Public Companies: Saudi Arabian Oil Co. (Aramco)
Key People:
Reported publicly:
www.marketwatch.com 
