Oil giant Saudi Aramco points to lower crude prices as profits plunge 38% in the 2nd quarter

• Saudi Aramco reported net income of $30.1 billion in the second quarter.
• That's down 38% from $48.4 billion seen in the same quarter last year.

Saudi Aramco, the world's third largest company by market cap, reported $30.1 billion in net income for the second quarter, a 38% decline from previous year.

In a press release, the energy giant pointed to declining crude prices and industry trends. Despite the sharp drop, profits still beat the $29.3 billion expected by analysts surveyed by Bloomberg.

"The decrease mainly reflected the impact of lower crude oil prices and weakening refining and chemicals margins," the company wrote in the release.

It's a far cry from 2022, when the state-run firm enjoyed a 90% jump in net income for the second quarter following Russia's invasion of Ukraine. Now, however, it joins other energy companies in operating amid a cooling market. BP saw a nearly 70% drop year-over-year, and ExxonMobil, Shell, and TotalEnergies also reported sizable plunges in their latest earnings.

"Our mid to long-term view remains unchanged," Aramco CEO Amin Nasser said in the release. "With a recovery anticipated in the broader global economy, along with increased activity in the aviation sector, ongoing investments in energy projects will be necessary to safeguard energy security."

"At the same time, we remain optimistic about the potential for new technologies to reduce our operational emissions," he continued.

In an effort to prop up sagging crude prices, Saudi Arabia, the dominant player in the Organization of the Petroleum Exporting Countries, said in June it would slash oil production by 1 million barrels a day starting in July. That announcement has since been extended into August and September, and there's a chance it goes beyond next month.

Two months ago, the rest of OPEC+, including Russia, agreed at a Vienna summit to extend earlier supply cuts through the end of next year.

Oil prices secured their sixth consecutive week of gains last week. On Monday, Brent crude, the international benchmark, moved 0.61% lower to $85.71 a barrel.