Riyadh: Oil Giants Saudi Aramco On Sunday, Russia unveiled a record profit of $48.4 billion in the second quarter of 2022, following a spurt in crude oil prices following a pandemic in Ukraine’s war and demand.
Net income jumped 90 percent year-on-year for the world’s largest oil producer, setting its second straight quarterly record after announcing $39.5 billion for Q1.
Aramco is the latest oil company to get eye-watering after ExxonMobil, Chevron, Shell, Total Energy and Eni also disclosed multibillion-dollar profits in the second quarter.
“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that investment in our industry is essential,” said Amin H. Nasser, President and CEO of Aramco.
“Indeed, we expect oil demand to continue to grow for the rest of the decade,” he said.
Aramco said net income rose 22.7 percent from the first quarter in “strong market conditions.” Half-year profit was $87.9 billion, up from $47.2 billion in the same period in 2021.
Aramco will pay a dividend of $18.8 billion in the third quarter, the same as it did in the second quarter. “It continues to work on increasing its maximum sustainable crude oil capacity from 12 million barrels per day to 13 million by 2027,” said its earnings announcement.
The quarterly profit, the highest since Aramco’s record-breaking IPO, beat analyst forecasts of $46.2 billion compiled by the company.
Shares of Aramco were down nearly 1.0 percent at 40.4 riyals ($10.8) in early trade on the Saudi Stock Exchange. They are up 25 percent this year.
State-owned Aramco issued 1.7 percent of its shares on the Saudi exchange in December 2019, generating $29.4 billion in the world’s largest initial public offering.
The “crown jewel” and major source of income for the conservative empire temporarily replaced Apple as the world’s most valuable company in March. It is now second on the list with a market valuation of $2.4 trillion.
Saudi Arabia has sought to open up and diversify its oil-dependent economy, especially since the appointment of Mohammed bin Salman as crown prince and de facto ruler in 2017.
Despite increasing production, Aramco has promised to reach “operational net zero (carbon) emissions” by 2050. Carbon pollution is higher in the country that uses the fuel, not where it is produced.
Nasser said Aramco quickly recovered from a series of attacks on its facilities by Yemen’s Houthi rebels earlier this year, including a dramatic strike in Jeddah that blew up smoke during a Formula One practice session in March.
“We were able to immediately restore our production in all these facilities. Within a few weeks, all the facilities were working and producing at full capacity,” he told a media conference call.
Earlier this month, the International Energy Agency said global oil demand would grow more than previously estimated this year as heatwaves and rising gas prices prompt countries to turn to fuels for electricity generation.
Oil prices fell by $30 a barrel in June due to increased supply, but remained close to $100.
The OPEC group of oil producing countries is gradually increasing production despite pressure from Western leaders including the US President. Joe Biden – who visited Saudi Arabia last month – to pump more.
Biden’s visit was seen as an ascent, as he had previously promised to make Saudi Arabia a “pariah” in the murder case. Washington Post Columnist Jamal Khashoggi by Saudi agents in Turkey in 2018.
British Prime Minister boris johnson He has also visited Saudi Arabia since the Russian invasion in February.
Net income jumped 90 percent year-on-year for the world’s largest oil producer, setting its second straight quarterly record after announcing $39.5 billion for Q1.
Aramco is the latest oil company to get eye-watering after ExxonMobil, Chevron, Shell, Total Energy and Eni also disclosed multibillion-dollar profits in the second quarter.
“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that investment in our industry is essential,” said Amin H. Nasser, President and CEO of Aramco.
“Indeed, we expect oil demand to continue to grow for the rest of the decade,” he said.
Aramco said net income rose 22.7 percent from the first quarter in “strong market conditions.” Half-year profit was $87.9 billion, up from $47.2 billion in the same period in 2021.
Aramco will pay a dividend of $18.8 billion in the third quarter, the same as it did in the second quarter. “It continues to work on increasing its maximum sustainable crude oil capacity from 12 million barrels per day to 13 million by 2027,” said its earnings announcement.
The quarterly profit, the highest since Aramco’s record-breaking IPO, beat analyst forecasts of $46.2 billion compiled by the company.
Shares of Aramco were down nearly 1.0 percent at 40.4 riyals ($10.8) in early trade on the Saudi Stock Exchange. They are up 25 percent this year.
State-owned Aramco issued 1.7 percent of its shares on the Saudi exchange in December 2019, generating $29.4 billion in the world’s largest initial public offering.
The “crown jewel” and major source of income for the conservative empire temporarily replaced Apple as the world’s most valuable company in March. It is now second on the list with a market valuation of $2.4 trillion.
Saudi Arabia has sought to open up and diversify its oil-dependent economy, especially since the appointment of Mohammed bin Salman as crown prince and de facto ruler in 2017.
Despite increasing production, Aramco has promised to reach “operational net zero (carbon) emissions” by 2050. Carbon pollution is higher in the country that uses the fuel, not where it is produced.
Nasser said Aramco quickly recovered from a series of attacks on its facilities by Yemen’s Houthi rebels earlier this year, including a dramatic strike in Jeddah that blew up smoke during a Formula One practice session in March.
“We were able to immediately restore our production in all these facilities. Within a few weeks, all the facilities were working and producing at full capacity,” he told a media conference call.
Earlier this month, the International Energy Agency said global oil demand would grow more than previously estimated this year as heatwaves and rising gas prices prompt countries to turn to fuels for electricity generation.
Oil prices fell by $30 a barrel in June due to increased supply, but remained close to $100.
The OPEC group of oil producing countries is gradually increasing production despite pressure from Western leaders including the US President. Joe Biden – who visited Saudi Arabia last month – to pump more.
Biden’s visit was seen as an ascent, as he had previously promised to make Saudi Arabia a “pariah” in the murder case. Washington Post Columnist Jamal Khashoggi by Saudi agents in Turkey in 2018.
British Prime Minister boris johnson He has also visited Saudi Arabia since the Russian invasion in February.