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Saudi Aramco doubles Q3 profit on the back of higher crude oil prices

Saudi Aramco doubles Q3 profit on the back of higher crude oil prices
Saudi Aramco doubles Q3 profit on the back of higher crude oil prices

Saudi Aramco, Saudi Arabia’s state-owned oil producer, has reportedly announced that the company’s third-quarter (Q3) net profit have more than doubled, elevated by sky-rocketing crude oil prices as well as higher volume of sales, outperforming analysts’ forecasts.

According to reports, the company stated through a bourse filing that its net income jumped to more than $30.4 billion for the financial quarter to 30th September 2021, from $11.8 billion a year ago. The purported income was above the average net profit projection of more than $28.4 billion made by four analysts.

Amin Nasser, CEO of Saudi Aramco stated that the company’s exceptional Q3 performance was an outcome of its unique low-cost position, elevated economic activity in crucial markets and a bounce-back in energy demand.

Supposedly, oil prices have jumped to multi-year highs owing to global crude futures going up 4.5% in the financial quarter, mostly supported by OPEC+s’ decision to retain its planned output increase instead of increasing it on the basis of global supply concerns.

Currently, brent oil futures have been trading at around $84.4 per barrel, up approximately 63% this year so far, while benchmark US crude price is roughly hovering at $83.57 per barrel, up just more than 70% through the same period.

The company’s capital expenditure has risen more than 19% from a year ago, to approximately $7.6 billion in the financial quarter. Aramco’s free cash flow went up to over $28.7 billion from the prior $12.4 billion. The firm also declared a $18.8 billion dividend for the third financial quarter, in accordance with its guidance.

Reliable reports claim, this year, higher oil volume sales and elevated prices have boosted Saudi Aramco’s share price up nearly 8%, valuing the oil company at over $2 trillion, putting behind Apple and Microsoft as the most valuable companies in the world.

Source credit: https://www.aljazeera.com/economy/2021/10/31/saudi-aramco-q3-profit-soars-on-higher-prices-volumes-sold

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