Al Rajhi Capital issues forecast for Saudi Aramco's Q3 2024 results

Al Rajhi Capital issued Q3 2024 earnings forecasts for Saudi Arabian Oil Co. (Saudi Aramco), which will likely disclose the three-month results before the start of the trading session on Nov. 5.

 

Saudi Arabia's average oil production reached around 8.99 million barrels per day (mbpd) in Q3 2024. The average selling price of oil stood at approximately $78.7 per barrel during the quarter, compared to $85 per barrel in Q2 2024.

 

“In this backdrop, we anticipate Q3 2024 revenue to be lower on a year-on-year (YoY) as well as quarter-on-quarter (QoQ) basis. The downstream business, in particular, could be under pressure due to weak refining margins and inventory revaluation losses,” Al Rajhi Capital said.

 

It also expected Aramco's net profit before minority interest to decline by 16.7% YoY and 6.6% QoQ to SAR 101.8 billion.

 

The report highlighted significant fluctuations in Brent crude prices during Q3 2024 due to geopolitical tensions and weak macroeconomic indicators. To bolster market stability, OPEC extended production cuts until the end of November 2024.

 

The following table shows Al Rajhi Capital’s Q3 2024 forecasts for Aramco’s results: