Home FinanceBusiness Saudi Aramco cashes in on rising oil prices as profit rises 80 percent.

Saudi Aramco cashes in on rising oil prices as profit rises 80 percent.

by YAR

Saudi Aramco, Saudi Arabia’s national oil company, on Sunday reported net income of $39.5 billion for the first quarter of 2022, an increase of around 80 percent from the same period a year earlier, reflecting in largely higher oil prices.

Oil and natural gas prices have soared in recent months as markets tightened as conditions caused by the pandemic eased. After Russia’s invasion of Ukraine in late February, sanctions reduced Russian oil production and raised concerns about possible shortages.

Saudi Aramco is benefiting from the overall picture, making additional profits as energy prices rise. Over the past year, oil prices have almost doubled, with Brent crude at $111 a barrel on Friday, up from $60 in spring 2021.

Unlike its Western counterparts like Shell and Exxon Mobil, which face shareholder demands to tackle global warming, the Saudi company is almost wholly government-owned and under little pressure to cut production and carbon dioxide emissions. carbon.

Indeed, Aramco, along with ADNOC, the Abu Dhabi national oil company, reckons it can take advantage of the pressure on Western companies.

“In the context of heightened volatility in global markets, we remain focused on helping meet global energy demand,” Aramco Chief Executive Officer Amin H. Nasser said in a statement on Sunday.

“We are investing for the long term, expanding our oil and gas production capacity to meet anticipated growth in demand,” Nasser added.

But as gasoline prices rose, contributing to higher inflation, Saudi Arabia largely shrugged off calls from Washington to speed up its schedule of gradual production increases agreed with OPEC and others. oil producers last summer.

The company said it would keep its dividend for the quarter unchanged at $18.8 billion. Most of the money will go to the government, which owns almost all the shares in the company, which was listed on the Saudi Tadawul stock exchange in 2019.

As previously announced, Aramco is awarding one bonus share for every 10 shares.

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