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Saudi Aramco sees dip in profit amidst oil price fluctuations

01:15 AM Mar 11, 2024 IST | GK NEWS SERVICE
saudi aramco sees dip in profit amidst oil price fluctuations
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New Delhi, Mar 10: Saudi Aramco, the world's largest energy company, has reported a significant decline in profits for the fiscal year 2023, following a series of strategic moves amidst volatile oil markets. The company's profits dropped by 25% to $121 billion (£91 billion), a decrease from the record-breaking performance in 2022.

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Despite the decline, this figure still marks the second-highest profit ever recorded by the state-backed energy giant. In response to the profit decrease, Saudi Aramco announced plans to bolster its payments to shareholders, with dividends set to increase to $98 billion, representing a nearly one-third rise compared to the previous year, reports international media.

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The dip in profits can be attributed to a combination of factors, including a reduction in oil production and a sharp decline in oil prices. In 2022, geopolitical tensions, particularly Russia's war in Ukraine, drove oil prices to as high as $130 a barrel, resulting in unprecedented profitability for Saudi Aramco. However, by 2023, oil prices had retreated to $85 a barrel, posing challenges to the company's revenue streams.

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