Saudi oil giant Aramco’s first-quarter profit soars 80%

oil major Saudi Aramco sunday said Profits soar In the first three months of the year, the state-backed company profited more than 80 percent from volatility in global energy markets and a surge in oil prices following Russia’s invasion of Ukraine.

The company, officially known as Saudi Aramco, reported a solid first quarter. beyond apple As the world’s most valuable company last week, its net income hit a record $39.5 billion, up from $21.7 billion a year earlier.

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The figure marked the oil group’s highest quarterly profit since 2019, when the Saudi government, which owns 98 percent of the company, listed on Riyadh’s Tadawul stock exchange in what was then the world’s largest initial public offering.

FILE PHOTO: The Saudi Aramco logo is seen at the 20th Middle East Oil and Gas Exhibition (MOES 2017) in Manama, Bahrain, March 7, 2017.REUTERS/Hamad I Mohammed/File Photo

In a statement, Aramco’s chief executive attributed the surge in profits to higher prices and higher production from the kingdom and allies in the group known as OPEC Plus. He also appeared to suggest that the devastation of the war in Ukraine underscored the important role of oil and gas companies such as Aramco.

“Amid heightened volatility in global markets, we remain focused on helping meet the world’s need for reliable, affordable and increasingly sustainable energy,” said President and CEO Amin H. Nasser, adding, Saudi Aramco is increasing its maximum production capacity to meet expected demand growth.

The national average oil price hit a new high of $4.47 a gallon on Sunday

Oil prices rose to a 14-year high of $139 a barrel in March immediately after Russia’s invasion of Ukraine, although there was a later revival as Russian oil continued to flow and reimposed blockade measures hurt demand for hydrocarbons in top importer China. the fall back. International benchmark Brent crude traded above $111 a barrel on Sunday.

An oil tank is seen at Saudi Aramco headquarters during a media visit in Dammam on November 11, 2007. REUTERS/Ali Jarekji

Shares in Saudi Aramco rose 1.85% to trade at 41.40 riyals, or $11.04 on the Tadawul stock market, on Sunday’s earnings report. Aramco’s shares have surged since the start of the year, making it the world’s most valuable company last week, with a market value of about $2.43 trillion.

The oil group said it maintained its $18.8 billion cash dividend in the fourth quarter of last year – completing one of the largest full-year cash dividends in the world. This sum is an important source of revenue for the Saudi government.

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The company, which defines it as the extent to which it is financed through debt, fell from 14% at the end of last year to 8% in the first quarter.

The strong quarterly results came after years of slow growth amid pandemic disruptions and relatively low prices following a recovery in economic activity and the easing of coronavirus restrictions around the world, which the state-backed company has rallied for last year. The company delivered record annual results.

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Soaring oil prices have provided a welcome boost to the Saudi economy.

According to statistics, Saudi Arabia, the world’s largest oil exporter and OPEC’s de facto leader, achieved its fastest economic growth in a decade in the first quarter of this year, with its gross domestic product increasing by 9.6% compared with the same period last year. mechanism.this The International Monetary Fund expects The kingdom’s economy will grow by 7.6 percent this year.

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