The Saudi Aramco logo was photographed on October 12, 2019 at an oil facility in Abqaiq, Saudi Arabia.
Maxim Shemetov | Reuters
Oil giant Aramco reported a more than 80% increase in net profit on Sunday, beating analysts’ expectations and setting a new quarterly earnings record since its IPO.
The Saudi Arabian giant said net income rose 82% to $39.5 billion in the first three months of the year, up from $21.7 billion in the same period last year. Analysts surveyed by Reuters expected net income of $38.5 billion.
Aramco’s record quarter comes in a prominent quarter for Big Oil, which is benefiting from sharp rises in oil and gas prices. Aramco said higher crude oil prices, higher sales volume and improved downstream margins drove its earnings.
“During the first quarter, our strategic downstream expansion further progressed in both Asia and Europe, and we continue to develop opportunities that complement our growth targets,” Aramco President and Chief Executive Officer Amin Nasser said in a statement on Sunday’s earnings report. there,” he said.
“With the increasing volatility of global markets, we continue to focus on meeting the global demand for reliable, affordable and increasingly sustainable energy.”
Aramco overtook Apple last week to become the world’s most valuable company with a market capitalization of around $2.43 trillion on Wednesday. The company’s market cap looked similar on Sunday.
Aramco’s share price is up more than 15% so far in 2022. In March, the oil giant reported that its annual profits more than doubled last year, driven by Russia’s invasion of Ukraine and continued rising oil prices due to the emergence of the European Union (EU). Sanctions on Russian oil and the possibility of tighter supply.
Aramco said cash flow from operating activities was $38.2 billion in the first quarter, down from $26.5 billion in the same period last year. Free cash flow increased 68% year-over-year to $30.6 billion, which it said would be able to provide shareholders with a dividend of $18.8 billion.
Aramco also said it would use $4 billion in retained earnings to distribute bonus stock to shareholders. This is equivalent to one share for every ten shares held.