Dubai, August 14 (BNA) Oil giant Saudi Aramco announced a significant 90% rise in second-quarter profit on Sunday, exceeding analyst expectations, driven by higher oil prices, selling volumes and refining margins.
Aramco CEO Amin Nasser said in the company’s earnings report that the company expects “demand for oil to continue to grow for the rest of the decade despite downward economic pressures on the short-term global outlook.”
Aramco’s net profit rose to 181.64 billion riyals ($48.39 billion) in the quarter ended June 30, from 95.47 billion riyals a year earlier.
Analysts expected a net profit of $46.2 billion, according to the average estimate of 15 analysts.
And it announced a dividend of $18.8 billion in the second quarter, in line with its own goal, which will be paid out in the third quarter.
Aramco shares are up more than 25 percent this year as oil and natural gas prices have risen to multi-year highs.
Aramco joins other major oil companies that have reported strong results in recent weeks.
On July 29, Exxon Mobil Corp. reported its largest-ever quarter profit, with net income of $17.9 billion, a nearly fourfold increase from the same period last year.
Industry margins for fuels such as gasoline and diesel rose worldwide, boosting profits for oil giants, including major European companies Shell and Total Energy, both of which reported results on July 27.
Aramco said its total hydrocarbon production averaged 13.6 million barrels of oil equivalent per day in the second quarter.
But while there is a very real and current need to protect the security of energy supplies, climate goals remain critical, which is why Aramco is ramping up production from multiple energy sources – including oil and gas, as well as renewables, and Blue. Nasser said.
Capital spending rose 25% to $9.4 billion in the second quarter compared to the same period in 2021.
Aramco said it continued to invest in growth, expanding its chemicals business, and developing low-carbon business prospects.
MI