The company had posted net profit in the fourth quarter of last year at 115.22 billion Saudi riyals ($30.73 billion).
Analysts’ average forecast for this year’s first quarter results pointed to a 12.9% drop in profits, to 123.7 billion riyals, according to Bloomberg expectations.
The company’s statement, on the Saudi stock exchange’s website, Tadawul, said total revenue fell 10.6% to 417.5 billion riyals (equivalent to $111.3 billion), from 467 billion riyals in the first quarter of 2022.
Meanwhile, Saudi Aramco announced the distribution of cash dividends to shareholders of 73.16 billion riyals ($19.51 billion) for the first quarter of 2023.
The company attributed the decline in its quarterly net profit on an annual basis primarily to lower crude oil prices, which were partially offset by lower income taxes and zakat and higher financing income and other income.
On a quarterly basis, the company said the reason for the increase is mainly due to lower income taxes and zakat, lower operating costs, higher financing income and other income, and this was partially offset by lower crude oil prices.
And the Saudi oil industry giant announced in a separate statement on Tuesday its intention to adopt a performance-linked dividend distribution mechanism, in addition to the sustainable and growing base profits the company is currently distributing and intends to maintain.
The company said in its statement that it aims for these performance-related earnings to reach 50% to 70% of annual free cash flow, after deducting base dividends and any other amounts, including foreign investments.
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