Saudi Aramco, the world's largest oil company, announced that its first-quarter profits fell by 19% to US$31.9bn, due to a decline in oil prices.
In a market update, it also promised to introduce performance-linked dividends, which prompted its shares to jump 3% in London.
Despite the drop in profits, the company said it remains well positioned to handle fluctuating commodity prices and is planning to move forward with capacity expansion and downstream investments to meet anticipated demand for petrochemicals.
Additionally, the company is increasing its maximum crude oil production capacity and investing in lower-carbon energy.
Chief executive Amin Nasser said the company's long-term outlook remains unchanged and it plans to continue to be a reliable energy supplier while supporting efforts to achieve an orderly energy transition.
In late morning trade in Riyadh, the stock was changing hands for 33.55 Saudi riyals, up 1 SAR.