Saudi Aramco’s net profit for the second quarter of 2024 is expected to fall 9% to 103.1 billion Saudi riyals ($27.48 billion) from SAR 112.8 billion a year ago, dragged by weak downstream business, Al Rajhi Capital said in a report.

On a sequential quarter basis, the earnings are forecast to decline by 0.8% from SAR 102.3 billion in Q1 2024.

The downstream business is expected to be hit by weak refining margins amid slower demand, the brokerage said.

Revenue for the world’s largest oil producer is likely to fall 0.3% year-on-year (YoY) to SAR 446.8 billion.  

The top line is expected to grow 2% quarter-on-quarter from SAR 437.8 billion in Q1 2024, driven by a slight improvement in oil prices.

However, production volumes are anticipated to be at similar levels as Q12024, the brokerage added.

In May, Aramco posted a 14% YoY fall in Q1 2024 net profit to  SAR 102.27 billion from $31.9 billion a year ago , on lower volumes of crude sold, weakening refining and chemicals margins, and lower other income.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)