Saudi Aramco unveils record $48.4 billion profit in Q2

RIYADH

Oil giant Saudi Aramco yesterday unveiled record profits of $48.4 billion in the second quarter of 2022, after Russia’s war in Ukraine and a post-pandemic surge in demand sent crude prices soaring.    

Net income leapt 90 percent year-on-year for the world’s biggest oil producer, which clocked its second straight quarterly record after announcing $39.5 billion for Q1.    

“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,” said Aramco president and CEO Amin H. Nasser.    

“In fact, we expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts.”    

Net income rose 22.7 percent from Q1 in “strong market conditions”, Aramco said. Half-year profits were $87.9 billion, up from $47.2 billion for the same period of 2021.    

Aramco paid an $18.8 billion dividend in Q2 and will disburse the same amount in Q3.    

The quarterly profits, the highest since Aramco’s flotation in late 2019, beat analyst forecasts of $46.2 billion.    

Aramco floated 1.7 percent of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world’s biggest initial public offering.     

The “crown jewel” and leading source of income for the conservative kingdom temporarily supplanted Apple as the world’s most valuable company in March. It now lies second in the list.   

Earlier this month, the International Energy Agency said global oil demand will rise more than previously forecast this year as heatwaves and soaring gas prices prompt countries to switch fuels for power generation.