Saudi Aramco Reports $30 Billion in Profit for Latest Quarter
Compared to a year ago, when high oil prices delivered record profitability, Saudi Aramco, the largest energy corporation in the world, announced an almost 40% decline in profit for the second quarter. Aramco nonetheless made a significant amount of money between April and June, even with the lower profit (Exxon Mobil made $7.9 billion and Shell $5 billion), and $30 billion for the entire year. The Numbers: Profits that fluctuate with the price of oil Due in significant part to the drop in oil prices since last year, major energy businesses have been reporting reduced profits. According to Aramco, the average oil price in the second quarter was slightly under $79 per barrel, a decrease from around $113 during the same time last year. Following Russia’s invasion of Ukraine, oil prices spiked and have since gradually decreased. Aramco reported a 12 percent increase in capital expenditures, a type of spending that implies investment in its operations, to $10.5 billion de...