International
Saudi Aramco profits surge 82 per cent in first quarter
Published on : 2022-05-15
Financial Times - Saudi Aramco reported its highest quarterly profits since listing its shares in 2019, as the world’s biggest oil exporter capitalised on soaring crude prices following Russia’s invasion of Ukraine.
Net income at the state-backed group rose to $39.5bn in the first three months of the year, an 82 per cent increase from the same quarter a year ago. The record earnings beat average analyst estimates compiled by the company of $38.5bn and were up from $30.4bn in the last three months of 2021.
The Saudi oil company and its international rivals, such as BP, Shell and ExxonMobil, have all benefited from the disruption to global energy flows driven by the war in Ukraine, which has pushed up oil, gas and refining prices.
Brent crude, the international benchmark, touched a 14-year high of $139 a barrel in March and is now trading at around $110 a barrel, roughly two-thirds higher than where it traded a year ago.
Aramco, which last week overtook Apple as the world’s most valuable company, said the results were underpinned by higher crude prices and volumes sold, along with improved refining margins.
The group’s total production including gas rose to 13mn barrels a day of oil equivalent, up from an average 12.3mn in 2021, as Saudi Arabia and other members of the Opec producer group unwound output cuts introduced at the start of the coronavirus pandemic.
“Energy security is vital and we are investing for the long term, expanding our oil and gas production capacity to meet anticipated demand growth,” said Aramco chief executive Amin Nasser.