Saudi Aramco followed its big oil competitors with bumper earnings, resulting from a recovery in oil and chemical prices and global easing of Covid-19 restrictions.
The world’s biggest energy company reported a net income of SAR95.5 billion ($25.5bn) in the second quarter, representing a 288 percent increase from the same period last year and reaching the highest level since the last quarter of 2018.
#Aramco’s financial performance for the second quarter of 2021 demonstrates the company’s sustainable growth and resilience#AramcoResults
— Aramco (@Aramco) August 8, 2021
Free cash flow also rose above the state-controlled firm’s quarterly dividend of $18.75bn for the first time since the start of the pandemic.
Commenting on the results, Aramco president & CEO Amin H. Nasser, said: “Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum.”
The oil giant also benefitted from its strategy to optimize its portfolio, announcing billion dollar deals in recent months, as well as their plan to focus on sustainability and low-carbon fuels.
“Our historic $12.4bn pipeline deal was an endorsement of our long-term business strategy by international investors, representing significant progress in our portfolio optimization program. Our landmark $6bn Sukuk reinforced our robust balance sheet, further diversifying our funding sources and expanding our investor base.” Nasser added.
“We continue to move forward on a number of strategic programs, which focus on sustainability and low-carbon fuels, maximizing the value of our assets, and advancing our downstream integration and expansion journey.”
Saudi Aramco president and CEO Amin H. Nasser.
The reopening of major economies has triggered a surge in commodity prices, with crude up around 40 percent this year.
In the past two weeks, oil companies such as BP Plc, Chevron Corp. and Royal Dutch Shell Plc have said they will increase share buybacks and payouts, confident the worst of the pandemic is over.
Aramco’s annual dividend of $75bn, the world’s largest, is a crucial source of funding for Saudi Arabia.
The Saudi government, which owns 98 percent of the company’s stock, is trying to narrow a budget deficit that ballooned last year as energy prices tanked with the spread of the virus.
*With Bloomberg
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