Dhahran, Nov. 1 (BNA): The Saudi Arabian Oil Company (Aramco) today announced its financial results for the third quarter, posting a 158% increase in net income to $30.4 billion year-on-year, and a dividend of $18.8. Billion dollars paid in the fourth quarter.
Reuters reported that the increase in net income was primarily a result of higher crude oil prices and sales volumes and strengthening of refining and chemicals margins in the third quarter, which were supported by the recovery in global energy demand and increased economic activity in key markets.
Commenting on the results, Aramco President and CEO Amin Nasser said: “Our exceptional performance in the third quarter was the result of increased economic activity in key markets and a recovery in energy demand, as well as our unique low-cost, financial position. discipline and our proven ability to reliably supply essential energy and chemical products to our customers.
“There are still some headwinds for the global economy, in part due to supply chain bottlenecks, but we are optimistic that energy demand will remain healthy for the foreseeable future.
“Looking forward, we maintain our long-term investment strategy, and will build on our track record of low-cost, low-carbon-intensive performance to advance our recently stated ambition to achieve net zero Scope 1 and Scope 2 greenhouse gas emissions across our wholly owned assets by 2050.”
ROACE’s return on assets, calculated on a rolling basis for 12 months, was 20.6% for the period ended September 30, 2021, compared to 14.8% for the same period in 2020, primarily reflecting an increase in net income.
The company’s gearing was 17.2% on September 30, 2021, compared to 23% on December 31, 2020. The decline was mainly due to higher cash and cash equivalents, driven by higher operating cash flows resulting from improved crude oil prices. Refining and Chemicals margins, consolidation of SABIC results and cash proceeds in relation to Aramco’s stable crude oil pipeline deal completed in the second quarter of 2021.
Aramco continues to invest in the future with a capital expenditure of $7.6 billion in the third quarter, which is an increase of 19%, compared to the same period in 2020. This increase is mainly due to the continued increase in crude oil and other development projects. Aramco maintains a flexible approach to capital allocation and expects capital expenditures for 2021 to be approximately $35 billion.
Aramco continued its strong track record of reliable supply, achieving 99.7% reliability in the delivery of crude oil and other products in the third quarter of 2021.
The company also demonstrated consistent performance in exploration and production, with total hydrocarbon production of 12.9 million barrels of oil equivalent per day in the third quarter of 2021, including average crude oil production of 9.5 million barrels per day. The company continues to implement its growth plans to enhance the long-term productivity of Saudi Arabia’s reservoirs and continues to implement government directives to increase its maximum sustainable crude oil capacity from 12 million barrels per day to 13 million barrels per day.
During the third quarter, the Hawiyah Gas Plant Expansion Project was in the advanced stages of construction. The project is part of the Haradh Gas Augmentation Program and is expected to start in 2022.
On August 15, the financial closure of the 1.5 GW Sudair solar photovoltaic plant was announced, in which Aramco holds a 30% stake through its wholly owned Saudi Aramco Energy Company (SABCO). The project, in partnership with ACWA Power, Water and Electricity Holding Company (Badel), a company owned by the Public Investment Fund (PIF), will be one of the largest solar power plants in the region.
Aramco’s investment marks its first participation in the Public Investment Fund’s renewable energy program, reflecting the company’s efforts to develop sustainable energy solutions. The first phase of the project is expected to start producing electricity during the second half of 2022.
On September 7, Aramco announced a significant expansion of its industrial investment programme, Aramco Neamat, with the signing of 22 new Memoranda of Understanding and one joint venture agreement. The program focuses on building capacity in four main sectors: sustainability, technology, industrial and energy services, and advanced materials.
The Namaat program aims to ensure greater reliability of energy supply and effective localization of the industrial supply chain, while targeting new opportunities to reduce carbon emissions and implementing carbon circular economy concepts.
“Namat” complements the Kingdom’s leading Emiratisation program for the total added value (IKTVA), in addition to the government’s “Shareek” program.
On September 20, the Oil and Gas Climate Initiative (OGCI), of which Aramco is a member, announced its goal to reach net zero emissions from operations under the control of OGCI members, as well as to leverage their leverage to achieve the same in non-operating assets, within the timeframe it has set. Paris Agreement. Following the OGCI announcement, Aramco on October 23 announced its ambition to achieve net zero greenhouse gas emissions of Scope 1 and Scope 2 across its wholly owned assets by 2050.
On September 24, Aramco’s Abqaiq oil processing facility, the largest oil processing plant in the world, became the company’s third facility to be added to the World Economic Forum’s global beacon network, which recognizes industrial sites that have successfully adopted and expanded the latest technology. Fourth Industrial Revolution Technologies.
On September 27, Jizan Integrated Gasification and Power Company (JIGPC), a joint venture comprising Saudi Aramco Energy Company (SAPCO), Air Products, ACWA Power and Air Products Qudra, signed agreements to purchase and finance the JIC project worth 12 Billion dollar. Combined cycle power plant (IGCC), air separation unit and some ancillary assets from Aramco located in Jazan Economic City. The joint venture aims to enhance the overall value of the Jazan refinery and power plant with IGCC gas, which will help transform the Jazan region and prepare it for more foreign investment and private sector participation.
MI