Saudi Aramco’s first-quarter net profit soars 82% amid high oil prices – zimo News


© Reuters. FILE PHOTO: The Saudi Aramco logo is photographed at an oil facility in Abqaiq, Saudi Arabia, on October 12, 2019.REUTERS/Maxim Shemetov/File photo

By Hadeel Al Sayegh and Saeed Azhar

DUBAI (Reuters) – State-owned oil producer Saudi Arabia (TADAW​​UL ? Sunday reported a nearly 82% rise in first-quarter net profit, largely in line with analysts’ forecasts, helped by strong oil prices.

Saudi Aramco, the world’s most valuable company along with Apple Inc (Nasdaq), reported net income of $39.5 billion for the quarter ended March 31, down from $21.7 billion a year earlier.

The world’s largest oil exporter is expected to post $38.5 billion in net revenue, according to the company’s average estimate of 12 analysts.

Aramco, which went public in 2019 and sold a 1.7% stake mainly to Saudi state and regional institutions, said its profit was the highest since its IPO, driven by higher crude prices, volumes and downstream margins.

BP (NYSE 🙂 and Shell (LON

Since late March 2021, oil prices have risen nearly 70% to $107.91 a barrel by the end of the first quarter.

OPEC+ agreed this month to further modestly increase its monthly oil output target, arguing that it cannot be held responsible for supply disruptions from Russia that have driven prices higher. He also said China’s coronavirus lockdown is threatening the demand outlook.

“We think Brent will eventually fall in the second half of the year, so expect (Aramco) earnings to decline and peak in the second quarter,” said Yousef Husseini, associate director of equity research at EFG. Hermes.

The company announced a second-quarter dividend of $18.8 billion, in line with market expectations, and approved 1 free share for every 10 shares held by the company.

Aramco said downstream profit margins improved in the first quarter and that it was pursuing opportunities to develop downstream businesses.

“Our strategic downstream expansion in Asia and Europe advanced further in the first quarter, and we will continue to develop opportunities to complement our growth goals,” Saudi Aramco Chief Executive Amin Nasser said in a statement.

Shares in the company are up 37% so far this year, outpacing the Saudi index, which is up nearly 14%.

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