Saudi oil giant Aramco reported a net profit of $29.07 billion for the second quarter of 2024, reflecting a decrease of 3.4% compared to the same period in 2023.

The decline in profits was primarily attributed to lower crude oil production and reduced refining margins, with the company producing approximately 9 million barrels per day, significantly below its capacity of 12 million barrels per day.

During this quarter, Aramco sold oil at an average price of around $85.70 per barrel, an increase from $83 in the previous quarter.

To support oil prices, OPEC+ has been systematically reducing production, with Saudi Arabia implementing cuts of over 1 million barrels per day in recent months.

The International Monetary Fund has indicated that Saudi Arabia's budget breakeven oil price for 2024 is $96.2 per barrel, highlighting the challenges the kingdom faces amid fluctuating oil prices.

Despite the profit drop, Aramco declared substantial dividends totaling $31.1 billion for the quarter, including a performance-linked payout of $10.8 billion.

Aramco plays a crucial role in Saudi Arabia's economy and is a key component of the Vision 2030 reform plan aimed at diversifying the economy beyond oil dependency.

Production levels are expected to remain stable until at least October 2024, when OPEC+ may allow for gradual monthly increases.

Despite the current profit decline, CEO Amin Nasser expressed optimism about future oil demand, particularly from China and the aviation industry.

Activists continue to voice concerns over Aramco's profits amid growing global discussions about climate change and the environmental impact of fossil fuel consumption.

The Saudi government holds approximately 81.5% ownership in Aramco, relying heavily on its dividends to support the national economy.