State-owned Saudi Aramco, the world’s largest oil company, is seeing its profits more than double. Thanks to the recovery in demand and the rise in oil prices.
In the third quarter, Aramco recorded a profit of 114.1 billion riyals (26.3 billion euros), compared to 44.2 billion riyals (10.2 billion euros) in the same period last year. This is an increase of 158%. Consequently, the oil company’s performance was better than the €25.2 billion that analysts had expected. This makes Aramco the most profitable company in the world once again, ahead of the American technology group Apple.
Aramco explains that “the increase in net profit is mainly due to higher crude oil prices and sales volumes.” “The global economy continues to face some headwinds, including supply chain bottlenecks, but we are optimistic that energy demand will remain healthy for the foreseeable future,” said CEO Amin Nasser.
As a result of the sharp increase in profits, Aramco was able to cover more than its quarterly dividend of 70.3 billion riyals (16.2 billion euros) with free cash flow. It amounted to 107.7 billion riyals (24.8 billion euros) in the third quarter.
The major oil companies are reaping the benefits of the global economic recovery after the Corona collapse. This has sent crude oil prices up 65 percent this year.
In addition, Aramco also helped boost oil production after Saudi Arabia lifted supply restrictions that were part of an agreement within the OPEC+ oil cartel. Between July and September, the kingdom produced an average of 9.6 million barrels per day, up from 8.5 million in the second quarter.
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