Financial Results : Aramco H1 2023 profit dips 28% to SAR 226.4 bln; Q2 at SAR 108.9 bln

Aramco H1 2023 profit dips 28% to SAR 226.4 bln; Q2 at SAR 108.9 bln

07/08/2023 Argaam Exclusive

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Saudi Arabian Oil Co. (Saudi Aramco) reported a net profit of SAR 226.4 billion after minority interest in H1 2023, a drop of 28% from SAR 315.8 billion a year earlier. 



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 1,165,270.00 908,151.00 (22.1 %)
Gross Income 690,765.00 511,004.00 (26.0 %)
Operating Income 602,194.00 434,881.00 (27.8 %)
Net Income 315,807.00 226,352.00 (28.3 %)
Average Shares 242,000.00 242,000.00 -
EPS (Riyals) 1.30 0.94 (28.3 %)

The decline in the six-month profit was attributed to lower crude oil prices and weakening refining and chemicals margins. This was partially offset by a decrease in production royalties, largely due to lower average effective royalty rate and crude oil prices, higher finance and other income, and lower income taxes and Zakat. 



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 648,373.00 448,318.00 (30.9 %)
Gross Income 371,593.00 250,667.00 (32.5 %)
Operating Income 324,489.00 212,553.00 (34.5 %)
Net Income 173,795.00 108,881.00 (37.4 %)
Average Shares 242,000.00 242,000.00 -
EPS (Riyals) 0.72 0.45 (37.4 %)

In Q2 2023, net profit declined 37% to SAR 108.9 billion from SAR 173.79 billion in the year-earlier period primarily due to lower crude oil prices and weakening refining and chemicals margins. This was partially offset by a decline in production royalties, largely attributable to lower crude oil prices and lower average effective royalty rate, and lower income taxes and Zakat.

 

The world’s largest oil exporter reported a decrease of 7.3% in Q2 net profit from SAR 117.47 billion in Q1 2023 on decreasing refining and chemicals margins and lower crude oil prices.  

 

Shareholders’ equity, after minority interest, rose to SAR 1.52 trillion as of June 30, 2023, from SAR 1.30 trillion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 - - - - - -
Q2 2014 - - - - - -
Q3 2014 - - - - - -
Q4 2014 - - - - - -
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 - - - - - -
Q4 2016 - - - - - -
Q1 2017 - - - - - -
Q2 2017 - - - - - -
Q3 2017 - - - - - -
Q4 2017 - - - - - -
Q1 2018 287,510.00 - 193,232.00 - 174,917.00 -
Q2 2018 341,276.00 - 222,990.00 - 204,651.00 -
Q3 2018 363,374.00 - 240,041.00 - 217,347.00 -
Q4 2018 354,857.00 - 216,943.00 - 201,490.00 -
Q1 2019 297,634.00 3.5 % 187,277.00 (3.1 %) 166,621.00 (4.7 %)
Q2 2019 322,307.00 (5.6 %) 202,770.00 (9.1 %) 181,256.00 (11.4 %)
Q3 2019 304,646.00 (16.2 %) 185,810.00 (22.6 %) 165,196.00 (24.0 %)
Q4 2019 312,198.00 (12.0 %) 188,077.00 (13.3 %) 161,798.00 (19.7 %)
Q1 2020 250,345.00 (15.9 %) 151,436.00 (19.1 %) 129,732.00 (22.1 %)
Q2 2020 139,354.00 (56.8 %) 81,121.00 (60.0 %) 53,092.00 (70.7 %)
Q3 2020 228,594.00 (25.0 %) 129,379.00 (30.4 %) 96,046.00 (41.9 %)
Q4 2020 243,798.00 (21.9 %) 147,432.00 (21.6 %) 104,490.00 (35.4 %)
Q1 2021 300,157.00 19.9 % 185,432.00 22.4 % 151,887.00 17.1 %
Q2 2021 349,950.00 151.1 % 215,179.00 165.3 % 179,115.00 237.4 %
Q3 2021 405,382.00 77.3 % 248,234.00 91.9 % 212,806.00 121.6 %
Q4 2021 446,269.00 83.0 % 271,963.00 84.5 % 228,110.00 118.3 %
Q1 2022 516,897.00 72.2 % 319,172.00 72.1 % 277,705.00 82.8 %
Q2 2022 648,373.00 85.3 % 371,593.00 72.7 % 324,489.00 81.2 %
Q3 2022 613,935.00 51.4 % 343,282.00 38.3 % 300,234.00 41.1 %
Q4 2022 487,168.00 9.2 % 289,767.00 6.5 % 241,649.00 5.9 %
Q1 2023 459,833.00 (11.0 %) 260,337.00 (18.4 %) 222,328.00 (19.9 %)
Q2 2023 448,318.00 (30.9 %) 250,667.00 (32.5 %) 212,553.00 (34.5 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 - - - - - -
Q2 2014 - - - - - -
Q3 2014 - - - - - -
Q4 2014 - - - - - -
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 - - - - - -
Q4 2016 - - - - - -
Q1 2017 - - - - - -
Q2 2017 - - - - - -
Q3 2017 - - - - - -
Q4 2017 - - - - - -
Q1 2018 91,787.00 - 0.38 - 91,787.00 0.38
Q2 2018 106,574.00 - 0.44 - 106,574.00 0.44
Q3 2018 113,375.00 - 0.47 - 113,375.00 0.47
Q4 2018 104,460.00 - 0.43 - 104,460.00 0.43
Q1 2019 83,226.00 (9.3 %) 0.34 - 83,226.00 0.34
Q2 2019 92,791.00 (12.9 %) 0.38 - 92,791.00 0.38
Q3 2019 79,788.00 (29.6 %) 0.33 - 79,788.00 0.33
Q4 2019 75,011.00 (28.2 %) 0.31 - 75,011.00 0.31
Q1 2020 63,532.00 (23.7 %) 0.26 - 63,532.00 0.26
Q2 2020 25,370.00 (72.7 %) 0.10 - 25,370.00 0.10
Q3 2020 44,278.00 (44.5 %) 0.18 - 44,278.00 0.18
Q4 2020 51,746.00 (31.0 %) 0.21 - 51,746.00 0.21
Q1 2021 78,590.00 23.7 % 0.32 - 78,590.00 0.32
Q2 2021 90,902.00 258.3 % 0.38 - 90,902.00 0.38
Q3 2021 109,072.00 146.3 % 0.45 - 109,072.00 0.45
Q4 2021 116,639.00 125.4 % 0.48 - 116,639.00 0.48
Q1 2022 142,012.00 80.7 % 0.59 - 142,012.00 0.59
Q2 2022 173,795.00 91.2 % 0.72 3,064.00 170,731.00 0.71
Q3 2022 156,068.00 43.1 % 0.64 - 156,068.00 0.64
Q4 2022 125,340.00 7.5 % 0.52 464.00 124,876.00 0.52
Q1 2023 117,471.00 (17.3 %) 0.49 4,491.00 112,980.00 0.47
Q2 2023 108,881.00 (37.4 %) 0.45 1,141.00 107,740.00 0.45

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 - - -
Q2 2014 - - -
Q3 2014 - - -
Q4 2014 - - -
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 - - -
Q1 2018 - - -
Q2 2018 - - -
Q3 2018 - - -
Q4 2018 64.83 % 60.87 % 30.90 %
Q1 2019 63.90 % 60.72 % 30.04 %
Q2 2019 63.30 % 60.72 % 29.43 %
Q3 2019 61.96 % 59.63 % 28.16 %
Q4 2019 61.77 % 58.63 % 26.75 %
Q1 2020 61.21 % 58.08 % 26.16 %
Q2 2020 60.25 % 56.37 % 24.21 %
Q3 2020 59.11 % 54.36 % 22.37 %
Q4 2020 59.09 % 53.31 % 21.45 %
Q1 2021 59.59 % 53.40 % 21.93 %
Q2 2021 60.35 % 55.00 % 23.65 %
Q3 2021 61.29 % 56.62 % 25.42 %
Q4 2021 61.32 % 57.10 % 26.32 %
Q1 2022 61.36 % 57.26 % 26.69 %
Q2 2022 60.04 % 56.02 % 26.70 %
Q3 2022 58.68 % 54.71 % 26.31 %
Q4 2022 58.41 % 54.52 % 26.20 %
Q1 2023 57.26 % 53.47 % 25.56 %
Q2 2023 56.94 % 53.29 % 24.97 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 - - - -
Q2 2014 - - - -
Q3 2014 - - - -
Q4 2014 - - - -
Q1 2015 - - - -
Q2 2015 - - - -
Q3 2015 - - - -
Q4 2015 - - - -
Q1 2016 - - - -
Q2 2016 - - - -
Q3 2016 - - - -
Q4 2016 - - - -
Q1 2017 - - - -
Q2 2017 - - - -
Q3 2017 - - - -
Q4 2017 - - - -
Q1 2018 242,000.00 - - -
Q2 2018 242,000.00 - - -
Q3 2018 242,000.00 - - -
Q4 2018 242,000.00 1.72 1.72 4.20
Q1 2019 242,000.00 1.68 1.68 -
Q2 2019 242,000.00 1.63 1.63 4.19
Q3 2019 242,000.00 1.49 1.49 4.29
Q4 2019 242,000.00 1.37 1.37 4.28
Q1 2020 242,000.00 1.29 1.29 4.42
Q2 2020 242,000.00 1.01 1.01 4.24
Q3 2020 242,000.00 0.86 0.86 4.15
Q4 2020 242,000.00 0.76 0.76 4.09
Q1 2021 242,000.00 0.83 0.83 4.18
Q2 2021 242,000.00 1.10 1.10 4.25
Q3 2021 242,000.00 1.36 1.36 4.41
Q4 2021 242,000.00 1.63 1.63 4.60
Q1 2022 242,000.00 1.90 1.90 4.95
Q2 2022 242,000.00 2.24 2.23 5.38
Q3 2022 242,000.00 2.43 2.42 5.74
Q4 2022 242,000.00 2.47 2.45 5.99
Q1 2023 242,000.00 2.37 2.33 6.16
Q2 2023 242,000.00 2.10 2.07 6.32

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 - - -
Q2 2014 - - -
Q3 2014 - - -
Q4 2014 - - -
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 - - -
Q1 2018 - - -
Q2 2018 - - -
Q3 2018 - - -
Q4 2018 - - -
Q1 2019 - - -
Q2 2019 - - -
Q3 2019 - - -
Q4 2019 21.32 21.32 6.81
Q1 2020 19.39 19.39 5.64
Q2 2020 26.68 26.68 6.34
Q3 2020 34.50 34.50 7.15
Q4 2020 37.87 37.87 7.07
Q1 2021 36.02 36.02 7.13
Q2 2021 26.45 26.45 6.82
Q3 2021 21.81 21.81 6.74
Q4 2021 18.12 18.12 6.43
Q1 2022 18.80 18.80 7.20
Q2 2022 15.76 15.85 6.56
Q3 2022 13.40 13.47 5.68
Q4 2022 11.83 11.90 4.87
Q1 2023 12.41 12.58 4.76
Q2 2023 15.37 15.56 5.11

Business Segments (Million)

Compared With The
Period upstream Downstream companies Eliminations
Q1 2019 237,105.00 122,907.00 339.00 (62717.00)
Q2 2019 257,113.00 136,125.00 345.00 (71276.00)
Q3 2019 236,714.00 130,565.00 362.00 (62995.00)
Q4 2019 239,463.00 137,822.00 593.00 (65680.00)
Q1 2020 192,737.00 112,283.00 484.00 (55159.00)
Q2 2020 95,490.00 71,739.00 409.00 (28284.00)
Q3 2020 154,065.00 121,906.00 363.00 (47740.00)
Q4 2020 163,178.00 135,293.00 414.00 (55087.00)
Q1 2021 201,388.00 166,121.00 365.00 (67717.00)
Q2 2021 228,034.00 194,912.00 385.00 (73381.00)
Q3 2021 275,054.00 220,726.00 308.00 (90706.00)
Q4 2021 310,961.00 241,269.00 720.00 (106681.00)
Q1 2022 368,363.00 269,210.00 395.00 (121071.00)
Q2 2022 443,360.00 346,989.00 658.00 (142634.00)
Q3 2022 416,022.00 329,392.00 528.00 (132007.00)
Q4 2022 345,660.00 254,123.00 370.00 (112985.00)
Q1 2023 301,914.00 253,962.00 504.00 (96547.00)
Q2 2023 293,457.00 247,446.00 598.00 (93183.00)

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 117,403.17 108,881.00 (7.3 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
SNB Capital 107,787.00 108,881.00 1.0 %
Al Rajhi Capital 110,899.00 108,881.00 (1.8) %
Arqaam Capital 112,905.00 108,881.00 (3.6) %
Goldman Sachs 99,852.00 108,881.00 9.0 %
SMBC Nikko Securities 136,161.00 108,881.00 (20.0) %
UBS Saudi Arabia 136,815.00 108,881.00 (20.4) %

Current
Market Cap (M Riyal) 6,800,200.00
Enterprise Value (EV) (M) 6,984,290.00
Shares Outstanding ((M)) 242,000.00
EPS ( Riyal) (TTM) 1.69
Book Value (BV) ( Riyal) 6.15
Par Value -
Adjusted P/E (Last12) 16.58
P/E (TTM) 16.59
Price/book 4.57
Return on Average Assets (%) (TTM) 16.5
Return on Average Equity (%) (TTM) 27.0

Share Price

28.05
0.10 0.36 %

Saudi Arabian Oil Co. (SAUDI ARAMCO)


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