Saudi Aramco profit surges 90% in Q2 amid rise in oil prices
- Aramco's profits in the second quarter were better than the average expectations of analysts, and on a quarterly basis
Riyadh: The Saudi oil company, Aramco announced on Sunday that it achieved a record profit of 181.16 billion riyals (48.4 billion dollars) in the second quarter (Q2) of 2022, an increase of 90.2 per cent compared to the same period in 2021, due to the rise in oil prices against the background of the war in Ukraine.
Aramco’s profits in the second quarter were better than the average expectations of analysts on a quarterly basis.
The giant company said in a statement that it achieved an increase in its quarterly net income by 90.2 per cent, from 95.5 billion riyals (25.5 billion dollars) in the second quarter of 2021 to 181.16 billion riyals (48.4 billion dollars) in the second quarter of 2022.
This increase is primarily due to the increase in crude oil prices, the increase in the quantities sold, and the increase in the profit margins of the refining sector.
The company stated that the free cash flow witnessed an increase of 53 per cent, and this increase is mainly due to the increase in cash flow from operating activities.
The return on average invested capital amounted to 31.3 per cent during the second and first half periods ending on June 30, 2022, compared to 16.7 per cent for the same two periods of 2021. This is a result of the rise in crude oil prices, quantities sold and the improvement in the profit margins of the refining, processing and marketing sector.
“Our record results for the second quarter reflect increased demand for our products – particularly as a low-cost product with one of the lowest levels of carbon intensity in the industry,” said Aramco President and CEO Amin Nasser.
He predicted that oil demand would continue to grow for the rest of the decade, despite downward economic pressures on the short-term global outlook.
Aramco affirms that it will continue to explore investments to seize growth opportunities, make progress in the strategic integration of the exploration and production, and marketing sectors, expand its business in the field of chemicals, and develop opportunities in low-carbon businesses.
