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Saudi Oil Giant’s Profits Surge Due To Price Rise

Saudi Oil Giant’s Profits Surge Due To Price Rise
As oil and gas prices rise around the world, Saudi Aramco has reported its greatest profits since its 2019 IPO. Profits at the state-owned energy company increased by 82 per cent in the first quarter, hitting $39.5 billion.
The company said in a press release that higher prices and increased production helped them grow. Oil and gas costs have risen dramatically since the invasion of Ukraine.
Although Russia is one of the world's largest exporters, Western countries have committed to reduce their energy dependence on the country.
Before the Ukraine war, oil prices were already climbing as economies recovered from the Covid epidemic and demand outstripped supply.
Other energy companies, such as Shell, BP, and TotalEnergies, have seen their earnings surge as a result, while many are experiencing losses as they quit Russia.
Amin Nasser, Aramco's president and CEO, said on Sunday that the business is "committed on helping satisfy the world's demand for reliable, affordable, and increasingly sustainable energy."
"Energy security is vital and we are investing for the long-term," he added.
The oil and gas producer announced in March that it will considerably increase investment and output over the next five to eight years.
That month, Prime Minister Boris Johnson paid a visit to Saudi Arabia, the world's largest oil exporter, in an attempt to persuade it to release more oil into global markets in the short term.
Saudi Arabia is the largest producer in the Opec (Organization of Petroleum Exporting Countries) oil cartel, and increasing output could help lower energy prices.
However, the government has been condemned for a number of human rights violations, including its involvement in the conflict in Yemen, the murder of journalist Jamal Khashoggi in 2018, the imprisonment of dissidents, and the frequent use of capital punishment.
The crisis in Yemen has posed security issues for Aramco, with Huthi rebels targeting some of its facilities and temporarily shutting down a large percentage of the kingdom's crude production.
Its most recent set of figures come only days after Aramco recovered the top place as the world's most valuable business from Apple for the first time in nearly two years.
On Sunday, Aramco also announced that it would issue 20 billion bonus shares to shareholders, one for every ten existing shares.

Christopher J. Mitchell

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