Aramco Beats Profit Forecasts Amid Regional Conflict

Saudi Aramco reported a strong second-quarter financial performance, exceeding analyst expectations in key areas. The company's adjusted net income reached $33.4 billion, surpassing consensus forecasts by 9%, despite a sharp decline in production amid regional conflict. Revenue details were not disclosed.

The upstream segment saw a significant drop in production, falling to 9.56 million barrels of oil equivalent per day, down 25% from the prior quarter and 15% below analyst estimates. In contrast, the downstream segment delivered strong results, with adjusted EBIT of $6.2 billion exceeding consensus forecasts.

Aramco's cash flow from operations before working capital reached $39 billion, beating expectations by 10%, while net debt increased to $31.9 billion, driven by a working capital outflow of $13.6 billion. The company maintained its quarterly base dividend at $21.9 billion and repurchased shares worth $0.61 billion under its approved program.