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)
CINCINNATI (AP) — The Cincinnati Bengals missed too many tackles and turned the ball over too many times to beat the New England Patriots in their season opener.
The Bengals weren't expecting it. Quarterback Joe Burrow was healthy to start the season for the first time since his rookie year in 2020.
Coach Zac Taylor and the team believed they did everything right to win an opener for the first time in three years.
The Bengals lost 16-10 on Sunday in a game they probably would have won without the turnovers, one of which was a fumble in front of the goal line by tight end Tanner Hudson that would have been a touchdown had he held on to Burrow's pass long enough to cross the line.
“It’s a momentum killer when the offense doesn’t put the ball in the end zone and they turn around and have the ball — that’s a gut punch to the team," Taylor said.
“Certainly, our defense has risen up in that situation a million times and got a stop and stopped the bleeding. Today, unfortunately, it didn’t go that way.”
Burrow's surgically repaired wrist doesn't seem to be hindering how the ball comes out of his hand. He was 21 of 29 for 164 yards. Not spectacular, but he distributed the ball to eight different receivers. Linebacker Logan Wilson had three quarterback hurries and led the team with 13 tackles. Evan McPherson was as accurate as ever, kicking a 51-yard field goal in the fourth quarter.
Cincinnati needs to start faster, produce more explosive plays and not turn the ball over. Defenders need to wrap up and make more tackles on first contact. Burrow could use some cleaner pockets.
“That’s the biggest frustration, looking at the turnover battle and looking at the missed tackles. It’s as simple as that,” Taylor said. "There was execution in enough areas that was certainly good enough for us to win, but when they get two extra possessions, and they rush for 170 yards, it’s going to be tough.”
Cincinnati had just 224 yards of offense.
“(We had) a lack of execution and really no production on offense,” center Ted Karras said. “The third quarter we got it going. But again, that’s probably too little too late. Ten points is not going to beat anyone."
New running back Zack Moss scored the only Bengals touchdown on a 5-yard run in the third quarter. He finished with nine carries for 44 yards. He also caught two passes for 17 yards.
“I wish I could have made a lot more plays,” Moss said. “I dropped two passes today, so I've got to get better there, and I will be better there. Tough loss. We all played a part in it.”
Ja'Marr Chase did not practice in the preseason as he awaits a contract extension that will make him one of the highest-paid receivers in the NFL. Burrow said he didn't know if Chase would play Sunday until the quarterback arrived at the stadium. The situation generated a lot of unnecessary “will he or won't he?” drama in the days leading up to the game. Chase caught six passes for 62 yards. The longest went for 28 yards.
“We’re pros," Chase said. “We have to forget about it and move on to the next week.”
No. 2 WR Tee Higgins missed the opener because of a hamstring injury. His status is week to week.
4 for 11 — Bengals on third down (36.4%).
The Bengals need to solve their problems fast. They'll be underdogs when they face the defending Super Bowl champion Chiefs at Kansas City on Sunday. The Chiefs opened with a 27-20 win over the Baltimore Ravens on Thursday.
AP NFL: https://apnews.com/hub/NFL
Cincinnati Bengals quarterback Joe Burrow (9) stands on the field during the second half of an NFL football game against the New England Patriots, Sunday, Sept. 8, 2024, in Cincinnati. (AP Photo/Jeff Dean)
Cincinnati Bengals running back Zack Moss (31) scores on a 5-yard touchdown run during the second half of an NFL football game against the New England Patriots, Sunday, Sept. 8, 2024, in Cincinnati. (AP Photo/Jeff Dean)
Cincinnati Bengals quarterback Joe Burrow (9) runs from New England Patriots linebacker Ja'Whaun Bentley (8) during the second half of an NFL football game, Sunday, Sept. 8, 2024, in Cincinnati. (AP Photo/Carolyn Kaster)
Cincinnati Bengals wide receiver Ja'Marr Chase (1) is tackled by New England Patriots safety Jabrill Peppers (5) after catching a pass during the second half of an NFL football game, Sunday, Sept. 8, 2024, in Cincinnati. (AP Photo/Jeff Dean)
New England Patriots safety Kyle Dugger, right, breaks up a pass intended for Cincinnati Bengals tight end Mike Gesicki during the first half of an NFL football game, Sunday, Sept. 8, 2024, in Cincinnati. (AP Photo/Jeff Dean)
