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Oil giant Saudi Aramco sees 82% profit rise in Q1 as oil prices surge

Oil giant Saudi Aramco sees 82% profit rise in Q1 as oil prices surge

Saudi Aramco, the Saudi Arabian oil and natural gas company, has reportedly announced an 82% increase in its profits in Q1, boosted by a global rise in the oil prices, which has vaulted it to overtake Apple as the world's most valuable firm.

The announcement was the latest in a spate of good economic updates for the kingdom, which is seeing its best growth rate in a decade thanks to a burgeoning oil sector.

Aramco's net income increased to $39.5 billion from $21.7 billion in the same period last year, mainly owing to rising crude oil prices as well as volumes sold, along with stronger downstream margins.

Last week, the finance ministry disclosed a 36% increase in quarterly revenue, in comparison to the same period in 2021, resulting in a surplus of over $15 billion.

The new financial statistics were released around four days after the oil giant surpassed the tech firm Apple as the most valuable corporation in the world, with shares valued at $2.42 trillion vs the $2.37 trillion of Apple.

Saudi Arabia has committed to reaching net-zero carbon emissions by 2060, ahead of the COP26 climate-change summit in 2021, raising suspicion from the environmental campaign firm Greenpeace.

Researchers warn of the pressing need to cut the use of fossil fuels as the worldwide need to control global warming grows across the world.

The war opposing a military coalition led by Saudi against Yemen's Huthi protestors, who have regularly targeted the country, including Aramco’s facilities, has posed security issues for the company.

Since April, a two-month cease-fire has largely held, but Huthi-claimed air attacks on two Aramco installations facilities situated in eastern Saudi Arabia in 2019, temporarily shut down half of the country's crude output.

Aramco also stated on Sunday that it would issue 20 billion bonus shares to shareholders, one for every ten shares already held.

According to the company, an $18.8 billion dividend would be paid in Q2.

The world's largest oil exporter has rejected US pressure to increase output in order to keep prices from rising after the war in Ukraine began.

Source credit: https://www.gminsights.com/industry-analysis/gas-turbine-service-market

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and RunningAfrica. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.