Profits nearly doubled for Saudi Aramco, Saudi Arabia’s largest oil company in the world, up 90% to 181.64 billion riyals ($48.39 billion in 90 days, more than half a billion a day) in the second quarter beat analysts’ expectations, which reached $ 46.2 billion. To give an idea of the magnitude of the Saudi oil company, just think that the stock market is worth $2,330 billion, compared to $42.7 billion of Eni’s capitalization: well over 55 times that. The reason for the bill boom is mainly due to the rush in oil prices that allowed to have higher refining margins, as well as to the growth in volumes sold. Saudi Arabia currently produces about 10 million barrels per day, much of which is exported to Asia and in particular to its main customer, China. Crown Prince Mohammed bin Salman said last month that the kingdom’s maximum production capacity is 13 million barrels per day, and Aramco said it is working to extend its reach to the roof.
Crude oil, demand has been growing for 10 years
For Amin Nasser, president and CEO of Aramco, the latest financial results reflect growing demand for oil, even as countries around the world, including Saudi Arabia, are committed to reducing their carbon emissions to prevent catastrophic levels of global warming. caused by the burning of fossil fuels. “The world demands affordable and reliable energy and we are responding to this demand,” he said, before adding that Aramco expects oil demand to continue growing for the rest of the decade, despite downward economic pressures and inflation. . “At a time when the world is concerned about energy security, we are investing in the future of our company. Our customers know that no matter what happens, Aramco will always finish deliveries,” added Nasser.
Dividend of 18 billion
Aramco said it is working to increase production from multiple energy sources, such as renewables and blue hydrogen. Capital expenditures increased by 25%, reaching $9.4 billion in the second quarter compared to the same period in 2021. In parallel with efforts to diversify the economy, the Saudi kingdom – which owns 98% of the company – continues to rely heavily on oil sales for revenue to pay public sector wages, subsidies, generous benefits to Saudi citizens, sustain defense spending and meet the 2030 targets announced by Crown Prince Mohammed bin Salman. Aramco has announced a $18 billion dividend in the second quarter, in line with its target to be paid in the third quarter. The company landed on the Riyadh stock exchange in December 2019, where it listed less than 2 percent of its share capital, in what was the largest IPO in history.
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