4.4 C
New York

Saudi Aramco profit surges 90% in second quarter amid energy price boom

Published:

An worker looks on at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019.

Maxim Shemetov | Reuters

Saudi oil giant Aramco reported a surprising 90% surge in second quarter net income and record half yr results on Sunday, as high oil prices proceed to drive historic windfalls for “Big Oil.” 

Aramco said strong market conditions helped to push its second quarter net income to $48.4 billion, up from $25.5 billion a yr earlier. The result easily beat analysts estimates of $46.2 billion.

“Our record second-quarter results reflect increasing demand for our products — particularly as a low-cost producer with one in all the bottom upstream carbon intensities within the industry,” Aramco President and CEO Amin Nasser said. 

Aramco said half yr net income soared to $87.9 billion, easily outpacing the most important listed oil majors, including Exxonmobil, Chevron and BP and other “Big Oil” corporations, that are all benefiting from a commodity price boom.

Oil prices surged above $130 dollars a barrel earlier this yr, as the worldwide energy crisis, made worse by supply disruptions stemming from Russia’s invasion of Ukraine, roiled global markets and contributed to a long time high inflation.

“While global market volatility and economic uncertainty remain, events throughout the first half of this yr support our view that ongoing investment in our industry is important — each to assist ensure markets remain well supplied and to facilitate an orderly energy transition,” Nasser added.

Aramco said it expects the post-pandemic recovery in oil demand to proceed for the remaining of the last decade, despite what it called “downward economic pressures on short-term global forecasts.”

The blowout results are also a significant windfall for the Saudi Arabian government, which relies heavily on its Aramco dividend to fund government expenditure. The Kingdom reported a $21 billion budget surplus within the second quarter. 

Aramco said it could maintain its dividend payout of $18.8 billion within the third quarter, covered by a 53% increase in free money flow to $34.6 billion. 

Major gains

Aramco is using its major gains to speculate in its own production capabilities in each hydrocarbons and renewables, while also paying down debt. 

“We’re progressing the most important capital program in our history, and our approach is to speculate within the reliable energy and petrochemicals that the world needs, while developing lower-carbon solutions that may contribute to the broader energy transition,” the corporate said.

Saudi Arabia, alongside its OPEC+ counterparts, has been under increasing pressure to spice up oil output to ease high prices. Company executives said limited global spare production capability was a significant concern for the worldwide pricing outlook.

Aramco said it achieved total hydrocarbon production of 13.6 million barrels of oil equivalent per day within the second quarter, and was working to spice up capability from 12 million barrels of oil per day to 13 million barrels of oil per day by 2027.

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img