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Oil giant Saudi Aramco boosted first-quarter profits by 30%, surpassing expectations

An oil tank at the oil processing facility of Saudi Aramco, a state-owned oil and gas company in Saudi Arabia, located in the Abqaiq oil field.

Stanislav Krasilnikov | TASS via Getty Images

Oil giant Saudi Aramco reported a 30% increase in net profit on Tuesday. This is a sign of continued recovery from the previous year’s oil market crash, which halved the full-year earnings of state-owned enterprises.

In a release released Tuesday, the company said its net profit for the first three months of the year increased from $ 16.6 billion in the year-ago quarter to $ 21.7 billion.

Despite lower oil production in February and March, it surpassed some analysts’ estimates of $ 17.24 billion. This figure is close to the company’s net profit level of $ 22.2 billion in the first quarter of 2019.

Saudi Arabia’s giant oil producer will also maintain dividends, with $ 18.8 billion expected to be paid in both the first and second quarters.

Revenues reflect a dramatic improvement in the climate of the oil market since the first quarter of last year. Aramco reported a 25% decline in net earnings during the period as it tackled the initial decline in the coronavirus pandemic and the surge in global demand.

According to the company, free cash flow in the first quarter was $ 18.3 billion, up from $ 15 billion in the year-ago quarter.

Aramco, like its peers around the world, has survived an uncertain oil price environment and an unpredictable global economic recovery. The company described 2020 as the “most difficult year” in history and is now benefiting from the recovery of the oil market, with international benchmark Brent crude oil prices about double last year. Purification and chemical margins are also beginning to improve.

“The momentum brought about by the recovery of the global economy has strengthened the energy market,” Aramco’s president and chief executive officer, Amin Nasser, said in a company press release Tuesday. “There are still headwinds,” he said, but “given the positive signs of energy demand in 2021, there are other reasons to be optimistic that a better day will come.”

Oil giant Saudi Aramco boosted first-quarter profits by 30%, surpassing expectations

Source link Oil giant Saudi Aramco boosted first-quarter profits by 30%, surpassing expectations

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