Oil giant Aramco announces record quarter as oil prices soar

Oil giant Aramco on Sunday reported a more than 80% jump in its net profit, beating analyst expectations and setting a new record for quarterly profit since its initial public offering.

The Saudi giant said net income rose 82% to $39.5 billion in the first three months of the year, up from $21.7 billion over the same period last year. Analysts polled by Reuters had expected net income to be $38.5 billion.

Aramco’s record quarter comes amid an exceptional quarter for Big Oil, which is benefiting from a sharp rise in oil and gas prices. Aramco said its earnings were driven by higher crude oil prices, increased sales volumes and improved downstream margins.

“During the first quarter, our strategic expansion downstream saw further progress in both Asia and Europe, and we continue to develop opportunities that complement our growth goals,” Aramco President and CEO Amin Nasser said in Sunday’s earnings statement.

“Against the backdrop of increased volatility in global markets, we remain focused on helping meet global demand for increasingly reliable, affordable and sustainable energy.”

Aramco last week surpassed its market value by $2.43 trillion on Wednesday apple to become The most valuable company in the world. The companies’ market capitalization looked similar on Sunday.

Aramco shares are up more than 15% so far in 2022. In March, the oil giant mentioned That its full-year profits last year more than doubled due to its continuation high oil prices, Driven by Russia’s invasion of Ukraine, EU sanctions on Russian oil and the prospect of a supply shortage loom.

Aramco’s results reflect continued momentum in the oil and gas industry, which has benefited from a price increase of more than 45% since the beginning of the year. Profits from Aramco’s global peers like BP And coincidence Reached its highest level in years, despite incurring write-offs Exit from operations in Russia After the invasion of Ukraine.

As a result, Aramco rewards investors. The company said it will use $4 billion of retained earnings to distribute bonus shares to shareholders — the equivalent of one share for every 10 shares held. It also kept its massive earnings steady at $18.8 billion, covered by a 68% year-over-year increase in free cash flow to $30.6 billion.