Saudi state oil company breaks revenue record driven by high oil prices

Published
08/14/2022 15:50

Updated
08/14/2022 16:53

The Saudi state oil company Aramco, the largest in the world, has registered a record after announcing this Sunday net income of 48.4 billion dollars in the second quarter of 2022driven by the increase in energy prices due to the war in Ukraine and the strong energy demand after the covid pandemic.

According to a company statement, it is a 22.7% increase in revenue compared to the first quarter of the year ($39.5 billion), and a trend that the company expects it to continue to rise by anticipating “continued demand for oil during the rest of the decadedespite negative economic pressures relative to short-term forecasts.”

Thus, Saudi Aramco has nearly doubled its profits posting net income of $87.9 billion in the first half of 2022 compared to 47.2 billion dollars in the same period last year, the note said.

Those figures represent a 90% increase compared to the first six months of the previous year and it is “a new record for quarterly earnings since it went public in 2019.”

“These results are due in the first place to the rise in crude oil prices and the volumes sold, and the increase in profit margins in refining“, he added.

The statement underlined that Saudi Aramco “continues to work to increase its maximum production capacity of 12 to 13 million barrels per day by 2027,” and that the company “maintained its strong track record in supply reliability, with deliveries of crude oil and other products reaching 99.8% in the second quarter of 2022”.

The most important

aramco It is the most important and strategic oil company in the world, with 10% of global crude oil production, and the largest supplier to Asia and Europeand is the company that invests the most in production and refining facilities.

Its investments include gigantic projects for the technological modernization of the production process and the energy transitionalthough he considers that the world will continue to depend on rifle fuels for decades to come.

The CEO of the company, amin nassershowed in the statement his hope that “the demand for oil will continue to grow during the rest of the decadedespite negative economic pressures on the near-term global outlook.

“Our record second quarter results reflect increased demand for our products, especially as we are a low cost provider and one of the least carbon intensive in the exploration and production of the energy sectorNasser said.

“Despite continued volatility in the world market, there are need to increase investments in the energy sector to help ensure that markets remain well supplied and facilitate an orderly energy transition,” he added.

The Saudi company, one of the most valuable in the world due to its listing on the stock market, stated in the document that will distribute dividends estimated at 18,800 million dollars during the third quarter.

He also announced that its free cash flow in the second quarter increased by 53% year-on-yearto $34.6 billion, rising to $65.2 billion for the first six months of the year, up from $22.6 billion and $40.9 billion, respectively, for the same two periods in 2021.

“This increase is primarily due to higher cash flow from operating activities,” the note added.

Record rise in oil prices as a result of Russia’s war in Ukraine and strong post-pandemic demand it is expected to give even more advantages to Saudi Aramco that takes advantage of the situation to position itself better in the market and continue to rise.