Saudi Aramco’s quarterly profit soars on higher oil prices, refining margins
- Oil majors Aramco, Exxon, BP have reported strong results in recent weeks as Western sanctions against Russia boosted crude, gas prices
- CEO Amin Nasser expects continued growth in oil demand for the rest of the decade
State oil giant Saudi Aramco on Sunday reported its highest quarterly profit since the company went public in 2019, boosted by higher oil prices and refining margins.
Aramco joins oil majors such as ExxonMobil and BP that have reported strong or record breaking results in recent weeks after Western sanctions against major exporter Russia squeezed an already undersupplied global market causing a surge in crude and natural gas prices.
The company expects “oil demand to continue to grow for the rest of the decade despite downward economic pressures on short-term global forecasts”, CEO Amin Nasser said in Aramco’s earnings report.
Net profit increased 90 per cent to 181.64 billion riyals (US$48.39 billion) for the quarter to June 30 from 95.47 billion riyals a year earlier and compared with a mean estimate from 15 analysts of US$46.2 billion.
It declared a second-quarter dividend of US$18.8 billion, in line with its own target, to be paid in the third quarter.
Aramco shares, which were little changed on Sunday, have risen more than 25 per cent this year.
Nasser, speaking to reporters on an earnings call, voiced concern over a lack of global investment in hydrocarbons that has led to “very limited” spare capacity. He said Aramco stands ready to raise oil output to its maximum sustained capacity of 12 million barrels per day should the Saudi government ask.