Aramco Earnings: Profits Slide on Lower Prices, but Special Payouts Continue to Boost Total Yield

Saudi Aramco's third-quarter net income fell to $32.6 billion from $42.4 billion the year before largely on lower oil prices and volumes. Total hydrocarbon volumes decreased to 12.8 million barrels of oil equivalent per day from 14.4 mmboe/d last year. Free cash flow decreased to $20.3 billion in the quarter from $45.0 billion in the prior year. Net debt fell to negative $33.0 billion from net debt of negative $32.7 billion at end-2022, but the gearing ratio rose to negative 7.6% from negative 7.9%. We maintain our fair value estimate of SAR 30.50 and wide moat rating for Aramco.