Saudi Aramco’s profit has surged 90 percent in the second quarter of 2022, beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019.
The oil giant was expected to report $46.2 billion in net income based on 15 analyst forecasts.
Profits of “the most profitable oil company in the world” hit SR182 billion ($48.4 billion) after revenue soared 80 percent to SR562 billion, according to a bourse filing.
This is up from SR148 billion in the prior quarter and SR95.5 billion in the second quarter of 2021.
The crude producer said the results were primarily driven by rising crude prices which soared to record highs earlier this year, higher volumes sold, and improved downstream margins.
“Our record second-quarter results reflect increasing demand for our products — particularly as a low-cost producer with one of the lowest upstream carbon intensities in the industry,” said CEO, Amin Nasser, commenting on the results.
“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential — both to help ensure markets remain well supplied and to facilitate an orderly energy transition,” he added.
Further to the solid results, Aramco maintained stable quarterly dividends at SR70.3 billion, representing a per-share payout of SR0.3198 to be paid on Sept. 7.
Capital expenditure during the quarter grew 25 percent to $9.4 billion as Aramco continued to invest and capture growth opportunities.
In terms of half-year performance, Aramco outperformed with an 86 percent profit surge to SR330 billion from SR177 billion a year earlier.
The Saudi-listed company almost doubled its revenue to SR1.03 trillion, compared to SR584 billion in the first half of 2021.
Buoyed by higher operating cash flow, Aramco managed to strengthen its balance sheet with a gearing ratio of 7.9 percent at June end, compared to 14.2 percent at the end of 2021.
“We expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts,” Nasser said.
“But while there is a very real and present need to safeguard the security of energy supplies, climate goals remain critical, which is why Aramco is working to increase production from multiple energy sources — including oil and gas, as well as renewables, and blue hydrogen.”