The drop in profit was attributed to the decrease in hydrocarbon prices, which affected crude oil and weakened refining and chemicals margins. However, Aramco managed to slightly exceed analysts' expectations, as they had anticipated a net profit closer to $29.8 billion.

Aramco explained in its filing to the Saudi stock exchange (Tadawul) that the adverse economic conditions were mitigated by signs of resilience in global demand, particularly supported by a gradual recovery in the aviation sector.

To maintain investor confidence, Aramco decided to follow the lead of its industry peers and boost dividend payouts despite the decline in profitability. The company reaffirmed its first-quarter base dividend of $19.5 billion, which was paid in the second quarter, and announced a second-quarter dividend of the same amount, to be distributed in the third quarter.

Additionally, Aramco intends to implement performance-linked dividends over six quarters, commencing with a $9.9 billion distribution in the third quarter.

Aramco's CEO, Amin Nasser, emphasized that their commitment to providing sustainable and progressive dividends for shareholders remains unchanged despite the challenging market conditions. (ILKHA)