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Saudi Aramco’s First Quarter Profits Beats Estimates With Rebound Of Oil Prices

Saudi Aramco’s First Quarter Profits Beats Estimates With Rebound Of Oil Prices
Strong oil prices helped the state controlled Saudi Arabian oil producer Aramco to report a 30 per cent year on year in net profits – beating estimates of analysts, while also maintaining its dividend payout on Tuesday.
There has been a rise in oil prices globally this year about one third with the surplus in global oil reserves because of the Copvid-19 pandemic coming down and there is a recovery in demand for oil in recent times which has benefitted the oil companies – which prompted global energy companies such as Exxon Mobil to boost earnings on the back of crude oil prices.
"Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming," Aramco CEO Amin Nasser said in a statement. "And while some headwinds still remain, we are well-positioned to meet the world's growing energy needs as economies start to recover," he said.
Aramco’s net income grew to $21.7 billion for the quarter to March 31 compared to net income of $16.7 billion in the same period a year earlier. According to the mean estimate from five analysts, they had expected a net profit of $19.48 billion.
Stronger oil market and higher refining and chemicals margins were the drivers of the estimate beating profits even though it was partly hit by lower production, Aramco said.
Last month, the previously approved action plan to ease output curbs further from May was reiterated by the OPEC+ group which comprised of the alliance of the Organization of the Petroleum Exporting Countries and other leading oil producers including Russia.
For the first quarter a dividend of $18.8 billion was declared by Aramco which would be paid in the second quarter. That was in line with the company’s guidance of a $75 billion dividend it wants to pay to shareholders for this year.
In the first quarter of 2021, the average total hydrocarbon production of Aramco came in at 11.5 million barrels per day of oil equivalent which included 8.6 million barrels per day of crude oil.

Christopher J. Mitchell

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