RIYADH: Saudi Aramco’s profit has surged 82 percent in the first quarter of 2022, beating the median of analysts' expectations with the highest quarterly profit since it went public in 2019.
The company was expected to report $38.5 billion in net income based on 12 analyst forecasts.
Profits of “the most profitable oil company in the world” hit SR148 billion ($40 billion) after revenue almost doubled to SR467 billion, according to a bourse filing.
This is up from SR121 billion in the fourth quarter and SR81 billion in the first quarter of 2021.
The crude producer said the results were “primarily driven by higher crude oil prices and volumes sold, and improved downstream margins.”
Aramco also maintained stable quarterly dividends at $18.8 billion and approved the issuance of one bonus share for every ten shares held at a total value of $4 billion.
Capital expenditure during the quarter stood at $7.6 billion and Aramco expects expenditure to grow further until around the middle of the decade in support of its long-term strategy.
“Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world’s demand for energy that is reliable, affordable, and increasingly sustainable,” said CEO, Amin Nasser, commenting on the results.
“During the first quarter, our strategic downstream expansion progressed further in both Asia and Europe, and we continue to develop opportunities that complement our growth objectives,” he added.
Along with strong financial results, Aramco has recently been in a race with Apple Inc. for the world’s most valuable company, with the tech major being pressured by rising inflation.
Strong oil prices drove the crude giant to claim the top position globally in terms of market cap as its shares hit record levels on May 11 to yield a valuation of $2.43 trillion.
The company’s rating has been revised by Fitch this year to positive from stable, with a credit profile of aa+.