On August 6th local time, Saudi Aramco released financial report showing that the company's net income in the second quarter was $29.07 billion, a 3.4% year-on-year decrease; its net income in the first half of the year was $56.342 billion, earning an average of about $2.2 billion per day.

Meanwhile, the company will maintain its quarterly dividend at $31.1 billion, mainly because dividends are becoming increasingly important to Saudi Arabia's trillion-dollar economic transformation plan.

CEO Nasser expressed a positive outlook on global oil demand, despite growing concerns of a global economic slowdown, which is still strong.

So far, Saudi Aramco's stock price has risen 1.68%.

Net profit for the second quarter fell year-on-year.

Oil giant Saudi Aramco reported on Tuesday that second-quarter net profit fell 3.4% to SAR 109.01 billion (about USD 29.03 billion) due to declining crude oil production and refining margins, higher than the median of 15 analysts' estimates provided by the company of USD 27.7 billion.

The latest performance report showed that due to the impact of declining crude oil production and refining margins, the company's second-quarter net profit fell by 3.4% to SAR 109.01 billion (about USD 29.07 billion); net profit for the first half of the year was USD 56.342 billion, down 9.1% year-on-year.

Operating activities generated a cash flow of USD 31.1 billion in the second quarter and USD 64.7 billion in the first half. Free cash flow in the second quarter was USD 19 billion, and USD 41.7 billion in the first half of the year.

At the same time, the company announced that it will distribute dividends of USD 31.1 billion in the second quarter, including USD 10.8 billion in performance-linked dividends.

Saudi Aramco launched performance-linked dividends last year, an unusual practice among listed companies.

"We have once again delivered market-leading performance and strong earnings and cash flows in the first half. Leveraging these strong earnings, we continue to provide sustainable and progressive base dividends as well as performance-linked dividends that share the upside with our shareholders," said Amin H. Nasser, President and CEO of Saudi Aramco.

In addition, Saudi Aramco said that it expects the total dividends in 2024 to be USD 124.2 billion, roughly in line with its previous guidance of USD 124.3 billion.

In addition, the Saudi government holds nearly 81.5% of Saudi Aramco's shares, relying on the company's revenue, including royalties and taxes. Saudi Arabia's sovereign wealth fund PIF holds a 16% stake in Saudi Aramco and also benefits from its dividends.

The world's most profitable oil company in 2023, the global oil industry experienced a severe fluctuation and adjustment, and the rise of new energy and the promotion of energy transformation also brought long-term pressure and changes to the oil and gas industry. Integrated oil & gas companies still have advantages in terms of quantity and ranking as the main force of the energy industry.

Saudi Aramco was listed on the Saudi Stock Exchange in 2019 and currently ranks fifth in the global market cap list, behind only Microsoft, Apple, Nvidia and Google, making it the most valuable energy company in the world.

In addition, among the Fortune Global 500 companies in 2023, Saudi Aramco also leads the profit list with approximately USD 120.7 billion in profits.

Saudi Aramco's huge profits also have an important impact on the global economy. As the leader of the oil market, Saudi Aramco's profitability directly reflects the supply and demand situation in the global oil market. The company's high profits not only promote the development of the Saudi domestic economy, but also provide stable supply for the global energy market.

Being the leader in the oil market, Saudi Aramco's profitability has a significant impact on the global economy.

The company's high profitability not only drives Saudi Arabia's domestic economic development, but also provides stable supply to the global energy market.

Since the end of 2022, OPEC and Russia-led OPEC+ have reduced production significantly.

On June 2 local time, OPEC+ agreed to extend the previous production cut agreement until the end of 2025. Market insiders pointed out that the current focus of the market on international oil prices will gradually shift to the demand side, and once seasonal demand rebounds and inventory decreases, international oil prices may rise.

Jim Burkhard, Director of Oil Research at the S&P Global CSI Commodity Equity Index, believes that the extension of production cuts by OPEC+ was expected, so the production cut statement itself is unlikely to have a long-term impact on oil prices, but extending the production cuts increases the possibility of a summer decline in crude oil inventories, which may boost oil prices for a period of time. Once seasonal demand increases and inventory decreases, oil prices may rise.