Saudi Aramco’s quarterly profit jumps 39% on higher oil prices
The oil giant joins the results bonanza as it reports record cash flow of $45bn
01 November 2022 - 22:08
byHadeel Al Sayegh
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The logo of Saudi Aramco at its headquarters in Dhahran, Saudi Arabia. Picture:AHMED JADALLAH/REUTERS
Dubai — Saudi Arabian state oil producer Aramco beat forecasts on Tuesday with a 39% jump in third-quarter net income and reported record cash flow, joining rivals in benefiting from higher prices and robust demand.
Aramco’s net income rose to $42.4bn for the three months to September 30 from $30.4bn a year earlier, it said in a regulatory filing. That was just above the median forecast of $41.7bn from 16 analysts.
"Aramco’s strong earnings and record free cash flow in the third quarter reinforce our proven ability to generate significant value through our low cost, lower-carbon intensity upstream production and strategically integrated upstream and downstream businesses," CEO Amin Nasser said.
The company’s free cash flow rose to $45bn from $28.7bn a year earlier. It declared a dividend of $18.8bn in the third quarter, meeting its own target, which will be paid in the fourth quarter.
"Given this lengthy period with elevated crude prices, which feed into solid cash flow performances as well as deleveraging of Aramco’s balance sheet, we are of the view that dividends will ultimately be increased," said Yousef Husseini, associate director for equity research at EFG Hermes.
Aramco joins oil majors ExxonMobil, Chevron and BP that have reported strong or record breaking results recently, benefiting from surging crude and natural gas prices that have boosted inflation around the world and led to fresh calls to further tax the sector.
"While global crude prices during this period were affected by continued economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade given the world’s need for more affordable and reliable energy," Nasser said.
Aramco’s reported net income, while higher year on year, was slightly lower than its record second quarter.
Net income was also partially offset by increased production royalties, resulting from stronger crude oil prices and higher sales volume.
Royalties and other taxes more than doubled year-on-year in the third quarter to $24.3bn, from $10.48bn last year.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Saudi Aramco’s quarterly profit jumps 39% on higher oil prices
The oil giant joins the results bonanza as it reports record cash flow of $45bn
Dubai — Saudi Arabian state oil producer Aramco beat forecasts on Tuesday with a 39% jump in third-quarter net income and reported record cash flow, joining rivals in benefiting from higher prices and robust demand.
Aramco’s net income rose to $42.4bn for the three months to September 30 from $30.4bn a year earlier, it said in a regulatory filing. That was just above the median forecast of $41.7bn from 16 analysts.
"Aramco’s strong earnings and record free cash flow in the third quarter reinforce our proven ability to generate significant value through our low cost, lower-carbon intensity upstream production and strategically integrated upstream and downstream businesses," CEO Amin Nasser said.
The company’s free cash flow rose to $45bn from $28.7bn a year earlier. It declared a dividend of $18.8bn in the third quarter, meeting its own target, which will be paid in the fourth quarter.
"Given this lengthy period with elevated crude prices, which feed into solid cash flow performances as well as deleveraging of Aramco’s balance sheet, we are of the view that dividends will ultimately be increased," said Yousef Husseini, associate director for equity research at EFG Hermes.
Aramco joins oil majors ExxonMobil, Chevron and BP that have reported strong or record breaking results recently, benefiting from surging crude and natural gas prices that have boosted inflation around the world and led to fresh calls to further tax the sector.
"While global crude prices during this period were affected by continued economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade given the world’s need for more affordable and reliable energy," Nasser said.
Aramco’s reported net income, while higher year on year, was slightly lower than its record second quarter.
Net income was also partially offset by increased production royalties, resulting from stronger crude oil prices and higher sales volume.
Royalties and other taxes more than doubled year-on-year in the third quarter to $24.3bn, from $10.48bn last year.
Reuters
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