Yahoo TV

STORY: Saudi oil giant Aramco on Tuesday (May 9) posted a first-quarter net profit of $31.9 billion.

It marked a 19% drop from the previous year – which the company attributed to lower crude prices.

According to Refinitiv data, the profit still beat analysts’ median forecast of just under $31 billion.

The world’s top oil exporter said the decline was partially offset by lower taxes, including in the country's zakat Islamic tax.

Last year, Aramco had made a record profit of over $160 billion.

Over the first quarter the oil titan reached deals to expand its downstream business abroad.

This includes investment in China and the acquisition of Valvoline's oil products business.

Last month, Saudi Arabia and other major producers announced surprise oil production cuts from May.

While this initially drove a spike in prices, global economic uncertainty and an unclear demand outlook continue to cast a shadow.

Crude oil and natural gas contributed over 32% of Saudi Arabia's GDP last year - and the production cuts are expected to weigh on GDP.

The IMF projects the kingdom’s growth will more than halve this year compared to 2022.