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Sunday, October 31, 2021

Saudi Aramco Q3 profit soars on higher prices, volumes sold - Al Jazeera English

Net income jumps to $30.4bn for the third quarter, up from $11.8bn a year earlier, boosted by rise in oil prices.

Saudi Arabian state oil producer Aramco has said its third-quarter net profit more than doubled, boosted by higher crude oil prices and volumes sold, beating analysts’ forecasts.

Net income jumped to $30.4bn for the quarter to September 30 from $11.8bn a year earlier, it said in a bourse filing on Sunday. That was above the median net profit forecast of $28.4bn from four analysts.

“Our exceptional third-quarter performance was a result of increased economic activity in key markets and a rebound in energy demand, as well as our unique low-cost position,” Amin Nasser, Aramco’s chief executive, said in a statement.

Oil prices have rallied to multi-year highs with global crude futures climbing 4.5 percent in the quarter, helped by the decision by OPEC+ to maintain its planned output increase rather than raising it on global supply concerns.

Brent oil futures are trading around $84.4 a barrel, up about 63 percent so far this year, while benchmark US crude is at roughly $83.57 a barrel, up just over 70 percent over the same period.

Aramco’s capital expenditure rose 19 percent from a year earlier to $7.6bn in the quarter.

The company’s free cash flow rose to $28.7bn from $12.4bn. It declared a dividend of $18.8bn for the third quarter, in line with its guidance.

Higher oil prices and volumes have boosted Aramco’s share price nearly 8 percent this year, valuing the oil giant at $2tn.

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Saudi Aramco Q3 profit soars on higher prices, volumes sold - Al Jazeera English
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