Saudi oil giant Aramco's first-quarter profits surge 80 percent

The bumper first-quarter earnings by the firm formally known as the Saudi Arabian Oil Co show a record net income of $39.5bn, ... AramcoovertookAppleastheworld’smostvaluablecompanyashigheroilpricespusheditssharestorecordlevelslastweek[File:HamadIMohammed/Reuters]PublishedOn15May202215May2022facebooktwitterwhatsappOilgiantSaudiAramcosaiditsprofitssoaredmorethan80percentinthefirstthreemonthsoftheyearasthestate-backedcompanycashesinonthevolatilityinglobalenergymarketsandsoaringoilpricesfollowingRussia’sinvasionofUkraine. Thebumperfirst-quarterearningsbythefirmformallyknownastheSaudiArabianOilCoshowarecordnetincomeof$39.5bn,upfrom$21.7bnduringthesameperiodlastyear. Thesurgewas“primarilydrivenbyhighercrudeoilpricesandvolumessold,andimproveddownstreammargins”,SaudiAramcosaidinapressreleaseonSunday. “Energysecurityisvitalandweareinvestingforthelongterm,expandingouroilandgasproductioncapacitytomeetanticipateddemandgrowth,”saidAramcoChiefExecutiveAminNasser. Resurgenteconomicactivityandtherelaxationofglobalcoronavirusrestrictionshadalreadyreviveddemandforhydrocarbonsanddeliveredstrongannualresultsforthestate-backedcompanylastyear. InMarch,Aramcoreporteda124percentnetprofitsurgefor2021. Oilpricesralliedtoa14-yearhighof$139abarrelinMarchimmediatelyafterRussia’sinvasionofUkraine,althoughtheylaterrecededasRussianoilcontinuedtoflowandnewlockdownshurtoildemandinChina. InternationalbenchmarkBrentcrudetradedatover$111abarrelonSunday. ‘Crownjewel’ AramcoovertookAppleastheworld’smostvaluablecompanyashigheroilpricespusheditssharestorecordlevelslastweek,withthecompany’smarketcapat$2.43trillion. Thecompany,thekingdom’s“crownjewel”andakeysourceofgovernmentrevenue,facessecuritychallengesrelatedtoanongoingwarbyaSaudi-ledmilitarycoalitionagainstYemen’sHouthirebels,whohaverepeatedlytargetedSaudiArabia,includingAramcosites. In2019,Houthi-claimedaerialassaultsontwoAramcofacilitiesineasternSaudiArabiatemporarilyknockedouthalfofthekingdom’scrudeproduction. AMarchattackbytherebelsonAramcofacilitiescauseda“temporary”dropinproduction. InearlyMay,SaudiArabiareporteditsfastesteconomicgrowthrateinadecade,asaboomingoilsectorfueleda9.6percentriseinthefirstquarteroverthesameperiodof2021. Theworld’sbiggestoilexporterhasresistedUSentreatiestoraiseoutputinanattempttoreininpricesthathavespikedsincetheUkrainewarbegan. Source:NewsAgencies