Saudi Arabia’s state oil company Aramco has reported a second-quarter fall in profit of 3.4% amid declining prices in the global oil markets and higher pressures on state finances.

In a statement on Tuesday, Aramco posted second-quarter net income of 109.01 billion riyals ($29.03 billion) in the three months to June 30.

The statement showed that Aramco’s capital expenditure in the second quarter had risen nearly 14% year-on-year to $12.1 billion.

Aramco has long been a vital source of income to Saudi Arabia as the government in Riyadh directly holds nearly 81.5% of the company and Saudi’s sovereign wealth fund PIF holds another 16% of its shares.

Crown Prince Mohammed bin Salman has relied on Aramco for his Vision 2030 which he claims will modernize Saudi Arabia and end its so-called “oil addiction”.

However, those plans have faced challenges in recent months amid falling oil prices and Saudi Arabia’s commitment to maintain cuts to production as part of an agreement with other oil producing nations.

Aramco’s shares are down about 17% this year while oil prices are at their lowest since January, amid concerns about global economic growth.

Saudi Arabian government, Aramco and PIF have launched initiatives to raise billions of dollars in capital markets this year.

The government decided to sell 0.7% of Aramco for $12.35 billion last month although company officials insist the move was not aimed at funding any specific project.

That comes as Aramco has maintained its generous dividend policy which experts believe facilitates a greater transfer of oil revenue to the government.

The Tuesday statement by Aramco showed its dividends had reached $31.1 billion in the June quarter.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk