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Saudi Aramco reported a very strong first quarter

Oil producer Saudi Aramco has reported a more than 80% rise in first-quarter net profit. This was primarily due to the high oil price.

What did the numbers look like?

Saudi Aramco, which has newly become the world’s most valuable company, posted a first-quarter net income of $39.5 billion, up from $21.7 billion a year earlier.

The company said its profit was was the highest in any quarter since going public, helped by oil prices, volumes sold, and improved margins in downstream businesses.

Cash flow from operating activities was $38.2 billion compared with $26.5 billion in the same period last year.

Free cash flow was $30.6 billion versus $18.3 billion in Q1 2021.

For Q4 2021, the company will pay dividends of $18.8 billion to its shareholders. For the first quarter of this year, the amount paid out in dividends will be the same. These will be paid in the second quarter. At the same time, the company approved the payment of one bonus share for every 10 shares of the company’s stock owned.

Aramco Logo on top of Glass Building

Other operations of the company

By the end of 2022, the company is expected to bring on stream the Hawiyah and Haradh projects, which are expected to deliver 1.3 billion standard cubic feet of raw gas per day.

The company has agreed to acquire a 30% stake in the Gdansk refinery, which produces 210,000 barrels per day.

There was also an agreement with BP for a jet fuel business, in which Saudi Aramco holds a 50% stake.

Read also: Germany is trying to negotiate gas supply terms with Qatar

Aramco President & CEO Amin H. Nasser also commented on the company’s operations in the quarterly report:

Against the backdrop of increased volatility in global markets, we remain focused on helping
meet the world’s demand for energy that is reliable, affordable, and increasingly sustainable.”

He further added:

“Energy security is vital and we are investing for the long term, expanding our oil and gas
production capacity to meet anticipated demand growth and creating long-term shareholder
value by capitalizing on our low lifting cost, low upstream carbon intensity, and integrated
downstream business.”

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...


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