Saudi oil company Aramco on Sunday posted a record $48.4 billion net profit in the second quarter of this year, driven by rising oil prices after the war in Ukraine and strong post-pandemic demand.
The company’s net income increased by 90%, helping the world’s largest oil producer to set a second consecutive quarterly record after a net profit of $39.5 billion from January to March.
“While global market volatility and economic uncertainty persist, the events of the first half of this year confirm our view that continued investment in this sector is essential both to keep markets well supplied and to promote an orderly energy transition. sector,” said the CEO of Aramco. Amin Nasser, quoted from Agence France-Presse (AFP).
Nasser added that he expects oil demand to “continue to rise through the end of the decade, despite declining economic pressures in near-term global forecasts.”
From April to June, Aramco’s net income rose 22.7% quarter-on-quarter, indicating a “strong market,” the Saudi-based company said in a statement. Net profit in the first half of the year reached $87.91 billion compared to $47.18 billion in the same period in 2021.
Aramco paid an $18.8 billion dividend in the second quarter of the year and will pay the same amount in the third quarter.
The profit generated in the second quarter of the year is the highest since the company’s listing on the stock exchange at the end of 2019 and exceeded analysts’ forecasts, according to which the profit was about 46.2 billion US dollars.
Aramco listed 1.7% of its shares on the Saudi Arabian Stock Exchange in December 2019 for $29.4 billion, the largest listing in history.
The company, the Saudi state’s strongest and main source of income, temporarily ousted Apple as the world’s most valuable company in March before falling to second place.
Saudi Arabia, taking advantage of rising oil prices, will see its gross domestic product (GDP) grow by 7.6% in 2022, according to estimates released in April by the International Monetary Fund (IMF).
The Saudi kingdom has sought to open up and diversify its economy, especially since the appointment of Mohammed bin Salman as crown prince and ruler in 2017.
In early August, the International Energy Agency announced that global oil demand would rise more than expected this year as heat waves and rising gas prices force countries to switch from fuel to oil production.
Oil prices are down $30 a barrel from their June peak due to increased supply but remain close to $100 a barrel.
Members of the Organization of the Petroleum Exporting Countries (OPEC) have gradually increased production, and Western leaders (such as US President Joe Biden and British Prime Minister Boris Johnson) are urging them to produce even more.
Author: Lusa
Source: CM Jornal
