Oil giant Saudi Aramco on Sunday unveiled record profits of $48.4 billion in the second quarter of 2022, following Russia’s war in Ukraine and a post-pandemic demand surge that sent crude prices soaring.
Net profit jumped 90% year-on-year for the world’s biggest oil producer, which posted its second straight quarterly record after announcing $39.5 billion for the first quarter.
Aramco is just the latest oil major to rake in eye-watering sums after ExxonMobil, Chevron, Shell, TotalEnergies and Eni also reported multibillion-dollar second-quarter profits.
“While global market volatility and economic uncertainty remain, events in the first half of this year reinforce our view that continued investment in our industry is critical,” said Aramco Chairman and Chief Executive Officer. , Amin H. Nasser.
“In fact, we expect oil demand to continue growing for the rest of the decade,” he added.
Net income rose 22.7% from the first quarter in “solid market conditions,” Aramco said. Half-year profits were $87.9 billion, compared to $47.2 billion for the same period of 2021.
Aramco will pay a dividend of $18.8 billion in the third quarter, the same as in the second quarter. It “continues to work on increasing maximum sustainable crude oil capacity from 12 million barrels per day to 13 million by 2027,” its earnings announcement said.
Quarterly profits, the highest since Aramco’s record IPO, beat an analyst’s forecast compiled by the company by $46.2 billion.
Aramco shares fell about 1.0% to 40.4 riyals ($10.8) in early trading on the Saudi stock exchange. They are up 25% this year.
State-owned Aramco floated 1.7% of its shares on the Saudi stock exchange in December 2019, raising $29.4 billion in the world’s largest initial public offering.
The ‘crown jewel’ and biggest earner of the conservative kingdom temporarily supplanted Apple as the world’s most valuable company in March. It now sits at number two on the list with a market valuation of $2.4 trillion.
Saudi Arabia has sought to open up and diversify its oil-dependent economy, particularly since the appointment of Mohammed bin Salman as crown prince and de facto ruler in 2017.
Despite the increase in production, Aramco has pledged to achieve “net zero (carbon) operational emissions” by 2050. Carbon pollution is counted in the country that uses the fuel, not where it is. is produced.
Nasser said Aramco had recovered quickly from a series of attacks by Yemen’s Houthi rebels on its facilities earlier this year, including a dramatic strike in Jeddah that sent smoke through a session. Formula 1 training in March.
“We were able to immediately restore production at all of these facilities. Within weeks, all facilities were operating and producing at full capacity,” he said in a conference call with media.
Earlier this month, the International Energy Agency said global oil demand would rise more than expected this year, as heat waves and soaring gas prices prompt countries to switch fuels for electricity production.
Oil prices have fallen $30 a barrel from a high in June due to increased supply, but remain near $100.
OPEC’s group of oil-producing nations has been steadily increasing output, despite pressure from Western leaders including US President Joe Biden – who visited Saudi Arabia last month – to pump in more.
Biden’s trip was seen as a descent after he previously vowed to make Saudi Arabia an “outcast” following the killing of Washington Post columnist Jamal Khashoggi by Saudi agents in Turkey in 2018.
British Prime Minister Boris Johnson has also visited Saudi Arabia since the Russian invasion in February.