The state owned oil company of Saudi Arabi - Saudi Aramco posted its greatest quarterly profit since going public in 2019, bolstered by increased oil prices and refining margins, on Sunday.
Aramco follows oil majors such as Exxon Mobil Corp and BP in reporting strong or record-breaking results in recent weeks as Western sanctions against major producer Russia squeezed an already oversupplied global market, forcing crude and natural gas prices to skyrocket.
According to CEO Amin Nasser, "oil demand will continue to expand for the rest of the decade despite adverse economic pressures on short-term global estimates."
Net profit jumped 90 per cent to 181.64 billion riyals ($48.39 billion) for the quarter ended June 30 from 95.47 billion riyals a year earlier, compared to a $46.2 billion average expectation from 15 analysts.
It issued a $18.8 billion dividend for the second quarter, in accordance with its own target, to be paid in the third quarter.
Aramco shares were hardly changed on Sunday after rising more than 25% this year.
Speaking to reporters on an earnings call, Nasser expressed concern about a lack of global investment in hydrocarbons, which has resulted in "extremely limited" spare capacity. He stated that if the Saudi government requests it, Aramco is ready to increase oil output to its maximum sustained capability of 12 million barrels per day.
In the second quarter, Aramco's total hydrocarbon production averaged 13.6 million barrels of oil equivalent per day. Nasser stated that the corporation is aiming to enhance output from a variety of energy sources, including renewables and blue hydrogen, as well as oil and gas, in order to achieve both energy security and climate goals.
Capital expenditure grew by 25 per cent in the quarter to $9.4 billion, compared to the same time in 2021. Aramco said it would continue to invest in growth, growing its chemicals division and exploring opportunities in low-carbon industries.
It is also investigating potential in the liquid-to-chemicals industry, with a particular focus on the Asian market.
Exxon earned its largest quarterly profit ever in July, a net gain of $17.9 billion, an almost fourfold rise from the previous year, while European rivals Shell and TotalEnergies also profited from rising margins for producing fuels such as gasoline and diesel.
The Saudi stock market, which is up 11 per cent this year, looks highly promising for company listings in the near future, according to Nasser, who added that there is "some hope" that Aramco will float some of its subsidiaries.
According to insiders, Aramco is working to consolidate two energy trading companies, with Aramco Trading Co absorbing Motiva Trading ahead of a potential initial public offering of the company.
(Source:www.voanews.com)
Aramco follows oil majors such as Exxon Mobil Corp and BP in reporting strong or record-breaking results in recent weeks as Western sanctions against major producer Russia squeezed an already oversupplied global market, forcing crude and natural gas prices to skyrocket.
According to CEO Amin Nasser, "oil demand will continue to expand for the rest of the decade despite adverse economic pressures on short-term global estimates."
Net profit jumped 90 per cent to 181.64 billion riyals ($48.39 billion) for the quarter ended June 30 from 95.47 billion riyals a year earlier, compared to a $46.2 billion average expectation from 15 analysts.
It issued a $18.8 billion dividend for the second quarter, in accordance with its own target, to be paid in the third quarter.
Aramco shares were hardly changed on Sunday after rising more than 25% this year.
Speaking to reporters on an earnings call, Nasser expressed concern about a lack of global investment in hydrocarbons, which has resulted in "extremely limited" spare capacity. He stated that if the Saudi government requests it, Aramco is ready to increase oil output to its maximum sustained capability of 12 million barrels per day.
In the second quarter, Aramco's total hydrocarbon production averaged 13.6 million barrels of oil equivalent per day. Nasser stated that the corporation is aiming to enhance output from a variety of energy sources, including renewables and blue hydrogen, as well as oil and gas, in order to achieve both energy security and climate goals.
Capital expenditure grew by 25 per cent in the quarter to $9.4 billion, compared to the same time in 2021. Aramco said it would continue to invest in growth, growing its chemicals division and exploring opportunities in low-carbon industries.
It is also investigating potential in the liquid-to-chemicals industry, with a particular focus on the Asian market.
Exxon earned its largest quarterly profit ever in July, a net gain of $17.9 billion, an almost fourfold rise from the previous year, while European rivals Shell and TotalEnergies also profited from rising margins for producing fuels such as gasoline and diesel.
The Saudi stock market, which is up 11 per cent this year, looks highly promising for company listings in the near future, according to Nasser, who added that there is "some hope" that Aramco will float some of its subsidiaries.
According to insiders, Aramco is working to consolidate two energy trading companies, with Aramco Trading Co absorbing Motiva Trading ahead of a potential initial public offering of the company.
(Source:www.voanews.com)
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