State-owned Saudi Arabian Oil Co., or Saudi Aramco, on Aug. 12 reported net income of $46.90 billion in the first half of 2019, a drop from $53.02 billion in the same period of 2018.
The company attributed year-over-year decrease in net income to lower average realized price of crude oil and higher purchases, producing and manufacturing costs and depreciation and amortization costs. Average realized crude oil price was $66 per barrel in the first half of 2019, compared to $69 in the 2018 period.
Production was unchanged at 10 million barrels per day for crude oil and 13.2 million barrels of oil equivalent per day for hydrocarbon.
The oil giant posted EBIT of $92.51 billion for the first six months of 2019, compared to $101.33 billion a year earlier. Free cash flow also fell year over year to $37.98 billion from $35.59 billion.
"Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance, cost management and fiscal discipline," Saudi Aramco President and CEO Amin Nasser said.