Saudi Aramco net profit soars 82% in Q1 on high oil prices
By Hadeel Al Sayegh and Saeed Azhar
DUBAI (Reuters) -State-owned oil producer Saudi Aramco on Sunday reported an virtually 82% rise in first-quarter web revenue, broadly according to analyst forecasts, helped by robust oil costs.
Aramco, which is at par with Apple Inc because the world’s Most worthy firm, reported a web earnings of $39.5 billion for the quarter to March 31 from $21.7 billion a yr earlier.
The world’s prime oil exporter was forecast to put up a web earnings of $38.5 billion, in line with a median estimate from 12 analysts supplied by the corporate.
Aramco, which listed in 2019 with the sale of a 1.7% stake primarily to the Saudi public and regional establishments, stated its earnings had been the best in any quarter because it went public, boosted by crude costs, volumes bought and improved downstream margins.
Earnings by international vitality firms akin to BP and Shell have risen to their highest in not less than a decade on the again of rising commodities costs, at the same time as a lot of them incur largely write-downs from exiting Russia.
Brent crude costs ended the primary quarter up virtually 70% to $107.91 a barrel from finish of March 2021.
OPEC+ agreed this month to a different modest improve in its month-to-month oil output goal, arguing it couldn’t be blamed for disruptions to Russian provide which have pushed up costs. It additionally stated China’s coronavirus lockdowns was threatening the outlook for demand.
“Our view is Brent will find yourself decrease within the second half of the yr and so we expect (Aramco) earnings to drag again and for the second quarter to be a peak,” stated Yousef Husseini, affiliate director for fairness analysis at EFG Hermes.
The corporate declared a dividend of $18.8 billion to be paid within the second quarter, according to market expectations, and authorized the distribution of 1 bonus share for each 10 shares held within the firm.
Aramco stated it noticed improved downstream margins within the first quarter and is trying to develop alternatives within the downstream sector.
“Through the first quarter, our strategic downstream enlargement progressed additional in each Asia and Europe, and we proceed to develop alternatives that complement our development aims,” Aramco CEO Amin Nasser stated in a press release.
Shares of the corporate have risen 37% because the begin of the yr, outperforming the Saudi index which is up almost 14%.
(Reporting by Hadeel Al Sayegh and Saeed Azhar; Enhancing by Raissa Kasolowsky and David Evans)
