Saudi Aramco on Sunday announced an 82% jump in its first quarter net income, especially with rising oil prices that pushed the Saudi energy giant to the rank of largest market capitalization in the world.
Its net profit was $ 39.5 billion, compared to $ 21.7 billion in the same period in 2021, mainly driven by higher crude prices and volume sold, and improved downstream margins [raffinage et distribution, ndlr]Saudi Aramco said in a statement.
This is a record since the IPO of the world’s largest oil exporter in 2019.
The jump in its revenues follows a series of favorable economic news for Saudi Arabia, where the emerging oil sector supports the fastest growth rate in a decade.
Aramco’s latest financial results were released four days after the company removed Apple as the world’s most important company, with shares worth $ 2.43 trillion compared to $ 2.37 trillion for the US company.
In March, the Saudi giant announced a 124% increase in net income in 2021 compared to the previous year.
Risks of disruption
However, the company, a flagship of the kingdom and a major source of revenue for the state, faces security challenges related to the war waged by the Saudi -led military coalition against Houthi rebels in Yemen, which repeatedly targeting the kingdom.
In 2019, Houthi -claimed airstrikes at two Aramco facilities in eastern Saudi Arabia temporarily halted half of the kingdom’s crude production.
In March, Houthi attacks on Aramco facilities caused a further decline in the meantime from production.
The oil giant also announced on Sunday that it would increase its capital by issuing 20 billion shares distributed free of charge to shareholders, according to the ratio of one share offered for ten holdings.
A dividend of $ 18.8 billion will be paid in the second quarter, he also said.
” Amid rising volatility in global markets, we remain committed to meeting the global demand for reliable, affordable and increasingly sustainable energy. “
In early May, Saudi Arabia reported its strongest growth rate in a decade, with the emerging oil sector rising 9.6% in the first quarter compared to the same period in 2021.
The largest oil exporter has resisted requests from the United States to increase production in an attempt to prevent prices from rising since Russia’s war with Ukraine began.
In this context, Saudi Arabia and the United Arab Emirates marked their commitment to the Organization of the Petroleum Exporting Countries (OPEC), led by Riyadh and Moscow, thus emphasizing their growing independence from their traditional allies.
Saudi Arabia’s gross domestic product (GDP) is expected to grow by 7.6% in 2022, the International Monetary Fund (IMF) estimated in April.
The kingdom has tried to both open up and diversify its oil-dependent economy, especially since Mohammed bin Salman was appointed crown prince in 2017.
Aramco floated 1.7% of its shares on the Saudi stock exchange in December 2019, raising $ 29.4 billion, the largest IPO in history.
In February, the kingdom transferred 4% of Aramco’s shares, worth $ 80 billion, to the country’s sovereign wealth fund – a move considered a possible prelude to the oil giant’s greater openness.
Source: Radio-Canada
