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Saudi Aramco profits surge 82 per cent in first quarter

Saudi Aramco has reported its highest quarterly earnings since listing its shares in 2019, as the world’s largest oil exporter benefited from rising oil prices following Russia’s invasion of Ukraine.

Net income in the state-supported group rose to $ 39.5 billion in the first three months of the year, up 82% from the same quarter last year. Peak earnings beat the company’s average analyst estimates of $ 38.5 billion and rose from $ 30.4 billion in the last three months of 2021.

The Saudi oil company and its international rivals, such as BP, Shell and ExxonMobil, have it all Helped From the disruption to the flow of global energy driven by the war in Ukraine, which has raised oil, gas and refining prices.

Brent crude, the international index, touched a 14-year high of $ 139 a barrel in March and is now trading at around $ 110 a barrel, about two-thirds more than where it was traded a year ago.

Aramco, last week Bypassed Apple As the most expensive company in the world, it said the results are based on higher crude oil prices and quantities sold, along with improved refining margins.

The group’s total output, including gas, increased to 13 million barrels a day equivalent to oil, an increase from an average of 12.3 million in 2021, when Saudi Arabia and other members of the OPEC group of producers canceled the output cuts introduced at the start of the corona plague.

“Energy security is essential and we are investing in the long term, expanding our oil and gas production capacity to meet the expected growth in demand,” said Aramco CEO Amin Nasser.

Saudi Aramco’s capital expenditures in the first quarter stood at $ 7.6 billion. The state-backed group said it expects capital expenditures of $ 40-50 billion in 2022, compared to $ 31.9 billion last year, with further growth expected by the middle of the decade.

Unlike its international counterparts, many of which have pledged to gradually reduce oil production to reduce emissions, Saudi Aramco is in the process of increasing its maximum crude oil production capacity from 12 million a day to 13 million a day.

It also wants to increase its natural gas production by 50% by 2030. The company announced on Sunday that it will complete the Hawiah and Hardh gas projects by the end of the year, which represent another 1.3 billion cubic feet per day of production capacity.

Saudi Aramco has added that it is expanding its international operations downstream. It highlighted the January acquisition of a 30% stake in a refinery in Poland and a new joint venture with BP to market jet fuel in the country. The Saudi group has also agreed to invest in a 300.00 b / d project of a refinery and petrochemicals in China.

The company maintained its dividend, one of the largest payments in the world, and pledged to return another $ 18.8 billion to shareholders in the second quarter. The payment is a vital source of income for the Saudi Arabian government, which still directly owns 94% of Saudi Arabia’s shares. It registered a little less than 2% of the company’s shares in December 2019 and transferred another 4% to Saudi Sovereign Capital Fund This year.

Shares of Saudi Aramco, traded in Riyadh, rose more than 27% this year.

Saudi Aramco profits surge 82 per cent in first quarter Source link Saudi Aramco profits surge 82 per cent in first quarter

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