Home » today » Business » Oil giant Aramco makes record profit of 48 billion

Oil giant Aramco makes record profit of 48 billion

14 augustus 2022

18:39

The Saudi state oil company is capitalizing on booming demand for oil and expects more of the same for the rest of the decade.

$48.4 billion. That’s the impressive net profit – almost doubling from a year earlier – that the world’s largest oil company, Saudi Aramco, was able to post for the second quarter. That teaches a press release from Aramco on Sunday, the full quarterly report will traditionally follow a day later.

Revenue climbed 80 percent to $150 billion, and free cash flow rose by half to nearly $35 billion. Shareholders will also benefit and will receive a $18.8 billion dividend, just like in the first quarter.

In fact, you can almost make it a ‘shareholder’: after the IPO at the end of 2019, Riyadh, in this case crown prince Mohammed bin Salmanstill 94 percent of the shares.

We expect oil demand to continue to grow for the rest of the decade

The quarterly profit is actually a global record. The ‘official’ record is the 59 billion net profit that the American mortgage giant Fannie Mae begin 2013 submitted. That ‘gain’, however, was largely due to a paper accounting capital gain on tax credits. The largest ‘operating’ net profit ever for a company not called Aramco was the $22 billion net profit for iPhone manufacturer Apple over the last three months of 2019.

The company thanks the good results, just like the European in American giants to the high oil prices that soared above $100 a barrel after the Russian invasion of Ukraine. The company is also benefiting from higher oil demand. After the corona crisis, the demand for oil increased worldwide.

Fears of a cooling of the global economy have cooled the oil price somewhat this summer, but Aramco itself has ensured that the price remains high. The ‘central banker’ of the world oil market agreed with the other members of the OPEC oil cartel in early August only a minimal 100,000 barrels of oil extra per day, a meager reward for the controversial begging round that US president did to bin Salman in July.

CEO Amin Nasser is ‘bullish’ about the outlook in the press release. We expect oil demand to continue to grow for the rest of the decade, despite short-term downward pressure.

Aramco’s good results are also reflected in the share price. The share has already gained 25 percent this year, pushing the market value to 2,400 billion dollars. The oil giant is regularly playing leapfrog with iPhone producer Apple this year as most valuable publicly traded company in the world (see chart).

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.