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Saudi Arabia's Aramco reports lower half-year profits as economic worries dampen energy prices

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Saudi Arabia's Aramco reports lower half-year profits as economic worries dampen energy prices
News

News

Saudi Arabia's Aramco reports lower half-year profits as economic worries dampen energy prices

2024-08-06 14:09 Last Updated At:14:20

DUBAI, United Arab Emirates (AP) — Saudi oil giant Aramco reported half-year profits Tuesday of $56.3 billion, down from the year before due to weakening volumes sold amid worries about the global economy.

Aramco, formally known as the Saudi Arabian Oil Co., said its overall revenue for the half-year was $220.7 billion, up from $218.6 billion the year before. Profits in 2023 were $61.9 billion, nearly $5 billion higher.

“The decrease was primarily a result of lower crude oil volumes sold, weakening refining margins and lower finance and other income,” Aramco said in a filing on Riyadh's Tadawul stock exchange. “This was partially offset by higher crude oil prices and lower production royalties compared to the same period last year and lower income taxes and zakat,” or Islamic charitable contributions.

Aramco will pay dividends of $20.3 billion for the second quarter and a performance-linked dividend of $10.8 billion, the company said. It hopes its overall dividend for the year will be over $124 billion.

While a sliver of Aramco trades on the Tadawul, the vast majority of the firm is held by Saudi Arabia's government, fueling its expenditure and providing wealth to its Al Saud royal family.

Saudi Arabia, a leader in the OPEC cartel, has allied with Russia and others outside of the group to try to keep production down to boost global oil prices. Benchmark Brent crude traded around $77 a barrel on Tuesday after Japan's Nikkei stock market plunged 12.4% Monday in its worst single-day decline since 1987.

It marked the latest in a global sell-off that began the previous week. A report Friday showed U.S. employers slowed their hiring in July by much more than economists expected. That was the latest piece of data on the United States economy to come in weaker than expected. It’s all raised fear the Federal Reserve has pressed the brakes on the U.S. economy by too much for too long through high interest rates in hopes of stifling inflation.

The Nikkei bounced back Tuesday morning, nearly recouping those losses.

Crude oil prices collapsed in the pandemic but rose again in 2022 on the back of Russia’s war on Ukraine, going as high as nearly $140. That sparked tension between the Biden administration and Saudi Arabia, but prices have since come down to a six-month low over concerns over the wider global economy. That's made the price at the pump less of an issue ahead of the November election between former U.S. President Donald Trump and Vice President Kamala Harris.

Aramco has a market value of $1.7 trillion, making it the world’s fifth-most valuable firm, behind Apple, Microsoft, NVIDIA and Alphabet, which owns Google. Aramco stock meanwhile has fallen by nearly a fifth over the past year as oil prices dropped.

Aramco reported making a $121 billion profit in 2023, down from its 2022 record due to lower energy prices.

Saudi Arabia’s vast oil resources, located close to the surface of its desert expanse, make it one of the world’s least expensive places to produce crude. Crown Prince Mohammed bin Salman hopes to use the oil wealth to pivot the kingdom off oil sales, through projects such as his planned $500 billion futuristic desert city, called Neom. But lower oil prices have Saudi Arabia reportedly looking at curtailing some of those ambitions as the kingdom likely faces looming budget deficits.

Meanwhile, activists criticized the profits amid global concerns about the burning of fossil fuels accelerating climate change.

FILE - Storage tanks are seen at the North Jeddah bulk plant, an Aramco oil facility, in Jeddah, Saudi Arabia, on March 21, 2021. (AP Photo/Amr Nabil, File)

FILE - Storage tanks are seen at the North Jeddah bulk plant, an Aramco oil facility, in Jeddah, Saudi Arabia, on March 21, 2021. (AP Photo/Amr Nabil, File)

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Madison Keys upsets No. 2 Iga Swiatek to reach her first Australian Open final

2025-01-23 21:18 Last Updated At:21:31

MELBOURNE, Australia (AP) — Madison Keys saved a match point and came back to upset No. 2 Iga Swiatek 5-7, 6-1, 7-6 (10-8) in a high-intensity, high-quality Australian Open semifinal on Thursday night to reach a Grand Slam title match for the second time in her career.

Keys is a 29-year-old American who was the runner-up at the 2017 U.S. Open. She claimed more games against Swiatek than the five-time major champion had dropped in her five previous matches at Melbourne Park combined over the past two weeks.

But Keys was on the brink of defeat when Swiatek served for the match at 6-5 in the third set and was a point away from ending it at 40-30. Swiatek put a backhand into the net there, and eventually got broken by double-faulting, sending the match to a concluding first-to-10, win-by-two tiebreaker.

The 19th-seeded Keys will face No. 1 Aryna Sabalenka in Saturday’s final. Sabalenka beat good friend Paula Badosa 6-4, 6-2 in the semifinals.

Sabalenka, a 26-year-old from Belarus, won the Australian Open the past two years and can become the first woman since 1999 to complete a threepeat.

"If she plays like this,” Badosa said about Sabalenka, “I mean, we can already give her the trophy.”

The key statistic: Sabalenka finished with a 32-11 advantage in winners.

That’s the sort of excellence that helped Sabalenka win her first major trophy at Melbourne Park in 2023, and she since has added two more — in Australia a year ago and at the U.S. Open last September.

The last woman to reach three finals in a row at the year’s first Grand Slam tournament was Serena Williams, who won two from 2015-17. Martina Hingis was the most recent woman with a threepeat, doing it from 1997-1999.

Madison Keys of the U.S. reacts during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Madison Keys of the U.S. reacts during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Iga Swiatek of Poland plays a backhand return to Madison Keys of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Iga Swiatek of Poland plays a backhand return to Madison Keys of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Iga Swiatek of Poland plays a forehand return to Madison Keys of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Iga Swiatek of Poland plays a forehand return to Madison Keys of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Iga Swiatek of Poland reacts during her semifinal match against Madison Keys of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Iga Swiatek of Poland reacts during her semifinal match against Madison Keys of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Supporters of Madison Keys of the U.S. react during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Supporters of Madison Keys of the U.S. react during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Madison Keys of the U.S. walks past Iga Swiatek of Poland during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Madison Keys of the U.S. walks past Iga Swiatek of Poland during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Iga Swiatek of Poland reacts during her semifinal match against Madison Keys of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Iga Swiatek of Poland reacts during her semifinal match against Madison Keys of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Madison Keys of the U.S. reacts during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Madison Keys of the U.S. reacts during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Iga Swiatek of Poland reacts during her semifinal match against Madison Keys of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Iga Swiatek of Poland reacts during her semifinal match against Madison Keys of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Iga Swiatek of Poland plays a forehand return to Madison Keys of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Iga Swiatek of Poland plays a forehand return to Madison Keys of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Madison Keys of the U.S. reacts during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Madison Keys of the U.S. reacts during her semifinal match against Iga Swiatek of Poland at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka of Belarus plays a forehand return to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Aryna Sabalenka of Belarus plays a forehand return to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka, right, of Belarus is congratulated by Paula Badosa of Spain following during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Aryna Sabalenka, right, of Belarus is congratulated by Paula Badosa of Spain following during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

American model and TV presenter Tyra Banks gestures as she watches Paula Badosa of Spain and Aryna Sabalenka of Belarus during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

American model and TV presenter Tyra Banks gestures as she watches Paula Badosa of Spain and Aryna Sabalenka of Belarus during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka of Belarus reacts during her semifinal match against Paula Badosa of Spain at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Aryna Sabalenka of Belarus reacts during her semifinal match against Paula Badosa of Spain at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Aryna Sabalenka of Belarus plays a forehand return to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Aryna Sabalenka of Belarus plays a forehand return to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Manish Swarup)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka of Belarus serves to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Aryna Sabalenka of Belarus serves to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Aryna Sabalenka of Belarus reacts during her semifinal match against Paula Badosa of Spain at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka of Belarus reacts during her semifinal match against Paula Badosa of Spain at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Paula Badosa of Spain reacts during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka of Belarus plays a forehand return to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Aryna Sabalenka of Belarus plays a forehand return to Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Paula Badosa of Spain falls during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Paula Badosa of Spain falls during her semifinal match against Aryna Sabalenka of Belarus at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Vincent Thian)

Aryna Sabalenka of Belarus walks past Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Aryna Sabalenka of Belarus walks past Paula Badosa of Spain during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Ng Han Guan)

Aryna Sabalenka of Belarus reacts during her semifinal match against Paula Badosa of Spain at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

Aryna Sabalenka of Belarus reacts during her semifinal match against Paula Badosa of Spain at the Australian Open tennis championship in Melbourne, Australia, Thursday, Jan. 23, 2025. (AP Photo/Asanka Brendon Ratnayake)

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