Saudi Aramco Sees Revenue Increase to $ 30.4 Billion in Third Quarter | WJHL


FILE – In this file photo from June 28, 2021, engineers and journalists at Saudi Aramco examine the Hawiyah natural gas liquids recovery plant, which is designed to process 4.0 billion standard cubic feet per day of sweet gas, a natural gas that does not contain significant amounts of hydrogen sulphide, in Hawiyah, in the eastern province of Saudi Arabia. The world’s largest oil company, Saudi Aramco, reported third-quarter net profit of $ 30.4 billion on Sunday, October 31, 2021, supported by soaring oil prices and recovering demand as the pandemic of coronavirus is subsiding. (AP Photo / Amr Nabil, file)

DUBAI, United Arab Emirates (AP) – The world’s largest oil company, Saudi Aramco, reported $ 30.4 billion in third-quarter net profit on Sunday, supported by soaring oil prices and recovering demand as the coronavirus pandemic abates.

The mostly state-owned Saudi oil giant Aramco, formerly known as Saudi Arabian Oil Co., said its net income more than doubled from $ 11.8 billion in the same three-month-to-year period. earlier. Last year’s figure came after profits fell dramatically as global lockdowns pushed oil prices down. Net income refers to the amount left over after taxes and preferred dividends have been paid.

Aramco CEO Amin Nasser called the company’s third quarter results “exceptional”, resulting from “increased economic activity in key markets and a rebound in demand for energy “, even as supply chain bottlenecks have jeopardized the global economic recovery.

The 158% rise in profits follows the global easing of virus-induced restrictions, tightening gas supplies and accelerating vaccination campaigns that have pushed crude prices up sharply. The price of international benchmark Brent crude was trading above $ 83.50 a barrel on Sunday.

Consumers and businesses are using more gasoline and jet fuel as governments ease restrictions, leading to a rally in energy markets.

“We are optimistic that energy demand will remain healthy for the foreseeable future,” Nasser said.

Crude prices have been helped by production cuts by the Organization of the Petroleum Exporting Countries and Their Allies, a group known as OPEC +, which meets later this week.

As consumption picks up, the group has gradually started to put barrels back on the market, with the intention of pumping an additional 400,000 barrels per day each month through December and raising the limit to 11 million barrels from l Saudi Arabia to 11.5 million next year.

The oil giant’s third-quarter profits, which listed a fraction of its shares three years ago, were an improvement over the same quarter before the pandemic in 2019, which brought in $ 21.3 billion.

Aramco shares jumped about 1% on the announcement, with a share costing 37.95 riyals, or $ 10.12 on Riyadh’s Tadawul stock market. Its market capitalization of $ 2,000 billion makes it one of the most valued companies in the world.

Aramco declared a dividend of $ 18.8 billion in the third quarter, in line with its target, which will be paid in the fourth quarter. The company said it would pledge a dividend of $ 75 billion, almost all of which will go to the Saudi government, which owns around 98% of the company.

Free cash flow reached $ 28.7 billion, well above the state-backed company’s quarterly dividend.

The company’s capital expenditures, which are mainly spent pumping more oil, amounted to $ 7.6 billion in the third quarter, a 19% increase from the previous year.

The company posted windfall profits at the opening of the grand United Nations climate summit in Glasgow, where world leaders are to discuss growing global efforts to tackle climate change this week.

Saudi Arabia has joined more than 100 countries in pledging to reduce its carbon emissions to zero by 2060. However, it has no plans to change its status as a global production leader. of oil and gas even as pressure increases on governments to invest in more renewable energy.

Aramco’s financial health is crucial to the stability of Saudi Arabia. Despite Saudi Crown Prince Mohammed bin Salman’s efforts to diversify the economy, the kingdom still relies heavily on oil exports to fuel government spending.

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