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Saudi Oil Giant Aramco Turns Profit for Second Quarter

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With a $48.4 billion (£39.8 billion) profit for the second quarter of 2022, the Saudi oil company Aramco has surpassed its previous high.

It represents a 90% year-over-year growth and the most enormous earnings for the top energy exporter since becoming public three years ago.

Oil and gas prices have soared as a result of Russia’s invasion of Ukraine.

Although Western countries have vowed to reduce their reliance on Russia for their energy needs, Russia is one of the largest exporters in the world.

The figure provided by the Saudi oil behemoth represents the highest quarterly adjusted profit of any publicly traded corporation, according to Bloomberg.

In addition to reporting record profits, the Saudi energy behemoth said its third-quarter dividend would remain at $18.8 billion.

The business promised to keep growing to meet demand. Amin Nasser, president and chief executive of Aramco, acknowledged that despite continued global market volatility and economic unpredictability, events in the first half of this year support the company’s belief that continuing investment in the oil industry is crucial for both ensuring markets are supplied with fuel and facilitating a smooth energy transition.

Despite negative economic pressure on short-term global estimates, he continued, “in fact, we expect oil demand to continue to expand for the rest of the decade.”

Before the Ukraine conflict, oil prices were already on the rise as countries began to recover from the Covid-19 outbreak, and demand outstripped supply.

ExxonMobil, Chevron, and BP, three of the largest oil producers in the world, all reported enormous profits this year, which has fueled calls for governments to enact a windfall tax in response to the worrying rise in living expenses.

In June, Exxon made “more money than than God this year,” according to US Vice President Joe Biden.

Saudi Arabia is the largest oil producer in OPEC, the association of the world’s major oil exporters.

Read Also: Saudi Arabia lead countries that can influence lower oil prices 

Opec+ decided to marginally increase output last week in an effort to lower the high price of oil. However, the most recent manufacturing output increase is smaller than in recent months.

Leaders who had asked for production to be increased, including Mr. Biden, were disappointed by the decision.

A successful quarter for Aramco

In the first half of the year, oil and energy firms experienced a boom. Aramco is gaining from both high production and sales prices as a result of the market turmoil caused by Russia’s invasion of Ukraine, which sent oil prices above $100 per barrel and soared refining profits. In the meantime, demand in the majority of the world kept increasing after the coronavirus pandemic. As a result, businesses like Shell Plc and Exxon Mobil Corp. reported record profits in the second quarter.

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