Oil: Saudi Aramco posts record net profit of $48.4 billion in second quarter

A platform of oil giant Aramco, north of Dhahran, Saudi Arabia, on March 20, 2018 (Saudi Aramco/AFP/Archives/Mohamed ALEBN ALSHAIKH)

Saudi oil giant Aramco reported record second-quarter net profit of $48.4 billion on Sunday, propelled by soaring crude prices following Russia’s war in Ukraine and strong post-pandemic demand.

Net profit has thus jumped 90% year-on-year and allows the world’s largest producer of black gold to record its second consecutive quarterly record after a net profit of 39.5 billion dollars from January to March.

“While global market volatility and economic uncertainty remain, events in the first half of this year confirm our view that continued investment in our industry is essential, both to to keep markets well supplied and to facilitate an orderly energy transition,” said Aramco CEO Amin Nasser.

“In fact, we expect oil demand to continue to rise for the remainder of the decade, despite downward economic pressures on near-term global forecasts,” he added.

Aramco’s April-June net profit rose 22.7% from the first quarter in “a strong market,” the Saudi-based company said in a statement. Net profit in the first half had reached $87.91 billion, compared to $47.18 billion for the same period of 2021.

Aramco paid an $18.8 billion dividend in the second quarter and will pay out the same amount in the third quarter.

Second-quarter profit, the highest since Aramco’s IPO in late 2019, beat analysts’ forecasts of $46.2 billion.

Official IPO ceremony of Aramco on the Saudi Stock Exchange, December 11, 2019

Official IPO ceremony of Aramco on the Saudi Stock Exchange, December 11, 2019 (Saudi Aramco/AFP/Archives/-)

Aramco floated 1.7% of its shares on the Saudi Stock Exchange in December 2019, raising $29.4 billion, the largest IPO in history.

The company, the flagship of the conservative kingdom and the main source of revenue for the Saudi state, temporarily supplanted Apple as the world’s most valuable company in March, before falling to second place.

– Demand will increase further –

Taking advantage of soaring oil prices, Saudi Arabia should see its Gross Domestic Product (GDP) grow by 7.6% in 2022, according to estimates published in April by the International Monetary Fund (IMF).

The Saudi kingdom has sought to open up and diversify its oil-heavy economy, particularly since the appointment of Mohammed bin Salman as crown prince and de facto ruler in 2017.

In early August, the International Energy Agency reported that global oil demand would rise more than expected this year as heat waves and soaring gas prices prompt countries to switch fuels for oil production. electricity.

Oil prices are down $30 a barrel from a peak seen in June due to increased supply, but remain near $100.

The producing countries members of the Organization of the Petroleum Exporting Countries (OPEC) have gradually increased their production, while Western leaders are urging them to produce even more. Among them is the American president, Joe Biden, who went to Saudi Arabia for this in July.

British Prime Minister Boris Johnson also visited Saudi Arabia in March, shortly after the Russian invasion of Ukraine on February 24.

© 2022 AFP

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