Oil giant Aramco reports first-quarter record as oil prices soar

Oil giant Aramco reports first-quarter record as oil prices soar

The Saudi Aramco logo is displayed at the oil plant in Abqaiq, Saudi Arabia, on October 12, 2019.

Maxim Semetov Reuters

Oil giant Aramco announced a jump of more than 80% in net profit on Sunday, exceeding analysts’ expectations and setting a new quarterly profit record from its IPO.

The Saudi giant said that net income rose 82% to $ 39.5 billion in the first three months of the year, from $ 21.7 billion in the same period last year. Analysts polled by Reuters had forecast net revenue of $ 38.5 billion.

The quarterly record for Aramco comes amid a quarter that stands out for Big Oil, which is benefiting from a sharp rise in oil and gas prices. Aramco said its profits were due to higher crude oil prices, increased sales volume and improved profit margins.

“During the first quarter, our downward expansion strategy went further in both Asia and Europe, and we continue to develop opportunities that complement our growth goals,” Aramco President and CEO Amin Nasser said in a profit announcement on Sunday. .

“In the context of increasing instability in global markets, we remain focused on helping to meet global demand for energy that is reliable, affordable and increasingly sustainable.”

With a market capitalization of about $ 2.43 trillion on Wednesday, Aramco last week surpassed Apple to become the most valuable company in the world. The corporations of the companies looked similar on Sunday.

Aramco’s share has risen more than 15% so far in 2022. In March, the oil giant reported that its profits for the whole year last year more than doubled due to the continuing rise in oil prices due to the Russian invasion of Ukraine. the forthcoming European Union sanctions on Russian oil and the prospect of tighter supply.

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Aramco’s results reflect a continuing momentum in the oil and gas industry, which has benefited from price increases of more than 45% since the beginning of the year. Profits from Aramco’s peers worldwide, such as BP and Shell, have reached their highest level in recent years, despite the fact that they suffered impairment for Russian export companies after the invasion of Ukraine.

As a result, Aramco rewards investors. The company said it would use $ 4 billion in new profits to distribute bonus shares to shareholders – amounting to one share for every 10 shares it holds. It also kept its huge dividend stable at $ 18.8 billion, covered by an annual 68% increase in free cash flow to $ 30.6 billion.

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