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Investing.com -- Saudi Aramco (TADAWUL:2222) reported a 22% decline in second-quarter net profit, weighed down by lower oil prices and rising debt levels.
The company posted net income of $22.7 billion for the three months ended June 30, falling short of the $23.7 billion median estimate from analysts. However, adjusted net income before minority interests came in at $24.5 billion, 4% above company-compiled consensus.
Earnings before interest and tax (EBIT) in the quarter totaled $44.6 billion, slightly ahead of expectations, while cash flow from operations before working capital (CFFO pre-WC) reached $30.5 billion, topping forecasts by 5%.
"Aramco delivers a slight beat in the quarter," Jefferies analyst Giacomo Romeo said in a note. "We expect today’s focus to be on capex outlook and dividend break-even in the context of the current macro environment."
The average realized crude oil price dropped to $66.7 per barrel, down sharply from $85.7 a year earlier and $76.3 in the previous quarter. Free cash flow declined nearly 20% year-on-year to $15.2 billion.
Aramco’s total debt rose to $92.9 billion at the end of June, up from $74.4 billion a year earlier. Gearing increased to 6.5%, compared to minus 0.3% in the same period last year and 5.3% in Q1.
The company confirmed a second-quarter dividend payout of $21.3 billion, which includes around $200 million in performance-linked distributions.
Capital investment guidance for full-year 2025 remains unchanged at $52 billion to $58 billion, excluding $4 billion in project financing.