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Saudi Aramco’s profits dipped in the last quarter after the world’s largest oil producer sold less crude and its refining margins weakened.
The state-owned company said on Tuesday that net income for the three months to the end of June fell to $29bn, down from $30bn in the same period a year earlier.
Despite the drop in profits, Saudi Aramco said it would keep its quarterly dividend of $31bn, putting it on track to make an annual payout of $124.2bn.
That would mark an almost 30 per cent increase on 2023, when it lifted its payout by 30 per cent after the group reported its second-highest annual profits.
The company’s dividends are an important source of revenue for the Saudi government that, along with the country’s sovereign wealth fund, owns 97 per cent of company.
The kingdom wants to use the proceeds from its fossil fuel assets to fund megaprojects, including the world’s tallest skyscraper.
The quarterly results come after the government in June sold about $12bn of shares in Saudi Aramco in an effort to broaden the company’s investor base.
Saudi Aramco shares have dropped nearly 20 per cent this year, as the company has scaled back production to help efforts by Opec+ to support the oil price.
Oil prices rallied earlier in the year owing to heightened tensions in the Middle East, but have fallen in recent weeks as part of a broader downturn in commodity markets. Oil prices slumped last week after weaker labour market data raised fears of a sharp slowdown in the US economy.
Shares in Saudi Aramco have underperformed rival oil majors, such as BP and ConocoPhillips, which have both recently lifted their payouts, so far this year.
