Aramco achieved highest quarterly profit since its IPO, jumping 288% to 95.5 billion riyals

Saudi Arabian Oil Company (Saudi Aramco) announced today, Sunday, its preliminary financial results for the second quarter of this year, achieving net profit growth of 287.8%, to post the highest quarterly profit since its IPO.

The company said in a statement to Saudi Tadawul, the net profit was 95.47 billion riyal, compared to 24.62 billion riyal, profit during the same period last year.

Revenue increased 153.5% to 312.35 billion riyal, compared to 123.23 billion riyal during the same period last year.

This strong performance is mainly due to higher crude oil prices, improved refining and chemicals margins and the consolidation of SABIC’s business results, partially offset by lower crude oil sales volumes and higher rents on crude oil production, according to the company.

In the first half of this year, the company achieved a net profit of 176.91 billion riyal, compared to 87.1 billion riyal in the same period last year, with a growth rate of 103.111%.

Revenue increased in the first six months of the year by 67.55% to 584.43 billion riyals. This increase is mainly due to higher crude oil prices, strong downstream earnings including inventory movement gains and SABIC consolidation, partially offset by lower crude oil sales volumes and higher rents. high on crude oil production.

powerful results

Aramco joins major oil companies which have published strong results in recent weeks.

Exxon Mobil said last month that second-quarter net income was $ 4.69 billion, or $ 1.10 per share, from $ 1.08 billion, or 26 cents per share, a year earlier.

Royal Dutch Shell posted the highest quarterly profit in more than two years, with adjusted profit of $ 5.53 billion, up from $ 638 million a year earlier.

The price of oil reached $ 70.70 per barrel at the end of trading on Friday, and its gains since the start of the year amount to more than 35%, thanks to production cuts decided by the Organization of Exporting Countries of oil and other producers of the OPEC + Group.

Dividend

The company announced the distribution of cash dividends to shareholders of 70.33 billion riyals (18.76 billion US dollars) for the second quarter of 2021.

He said the distribution share is 0.3518 riyals.

The eligibility date is August 15, provided that the eligibility concerns the shareholders who own the shares at maturity and are registered in the issuer’s share register at the Center de Dépôts at the end of the second trading day following the ‘due date.

second quarter forecast

Aramco Chairman Amin Nasser said the second quarter reflects remarkable results for Aramco based on the strong recovery in global energy demand, which improves Aramco’s entry into the second half of year, which is more flexible and adaptable, in light of the wave of global economic recovery.

While some funds are still unclear on the challenges posed by the emerging corona virus variables, the company has demonstrated its advanced ability to adapt quickly and effectively to changing market conditions, according to Nasser.

He pointed out that the landmark pipeline infrastructure deal, worth 46.5 billion riyals ($ 12.4 billion), represented support for “our long-term business strategy through trust. international investors, which represents significant progress in our program to improve our business portfolio. the single issuance of the sukuk increased the value by 22.5 billion riyals ($ 6 billion) thanks to our strong financial position, as well as the increased diversification of funding sources and the expansion of our investor base. “

He continued, “We will continue to make progress on a number of strategic programs, which have a strong focus on sustainability, low carbon fuels, maximizing the value of our assets by optimally exploiting their potential and promoting the integration and expansion of our refining and chemical activities nationally and globally. All of these reasons and more make us optimistic. In the second half of 2021, and beyond, the outlook for the future.

Abdullah Al-Hamid, head of the board of GIB Capital, said that despite Saudi Arabia’s commitment to cut production with OPEC and its allies (OPEC Plus), this has not stopped Aramco from taking advantage of what is happening in the market with increasing demand. for oil.

In his speech to Al Arabiya, he added that Aramco is committed to rewarding distributions to all shareholders and has made no difference between shareholders under any circumstances, and is committed to such distributions until 2025.

He explained that the share price in the market is good if it is compared to the rest of the international companies in the same field, and that it trades with good profitability.

He explained that what is positive for shareholders is the capital expenditure, as the company has committed to distribute 131 billion riyal of capital expenditure in 2021, of which it spent in the second quarter 28 billion riyals. and in the first quarter 31 billion riyals, and these expenses will have a positive effect on the shareholders in the years to come.