Tue. Oct 26th, 2021

Saudi Aramco’s profits rose 30 percent in the first quarter of the year, as Kavid-shattered economies came back to life and oil demand recovered.

Saudi Aramco said on Tuesday that its profits had risen 30 percent in the first quarter of this year compared to last year, with crude oil prices lagging behind. The results came as several major economies around the world were easing restrictions on the way out of the recession and through a rollout of vaccines against COVID-19.

The company’s financial results show a net income of 20 2120 billion for the first three months of the year, when Armco’s revenue sank $ 16.7bn as the initial effects of the coronavirus epidemic began to dramatically reduce global demand for oil. Brent crude fell to about ড 20 a barrel from last year’s lowest point.

The Saudi Arabian Oil Co. said the rise in profits largely reflected higher crude oil prices, which averaged about $ 60 a barrel in recent months. Prices continue to rise amid growing global demand for unrefined and chained cuts in production to balance the market.

Armco produced about 92.2 million barrels a day in 2020, compared to the current average of 6.6 million barrels for the first quarter of 2021.

Crown Prince Mohammed bin Salman revealed in an interview last week that Armco is set to sell a one per cent stake in a leading global energy company. [File: Jacquelyn Martin/AP Photo]

The company has confirmed that it will pay a promised dividend of. 18.75 billion to its partners this quarter, or what will be the amount of b 75bn per year? Almost all of this payment goes to the Saudi government, which owns more than 99 percent of the companies, with the remaining 1.7 percent trading in the Saudi stock market.

The payments, however, exceed Aramco’s current cash flow of 18.3bn. Armco cut its full-year profits by almost half to $ 49 billion in 2020, down from $ 6 billion in 2016 and ১১ 111 billion in 2018.

Yet the Saudi company remains one of the most valuable companies in the world.

Aramco’s high earnings will come as a welcome relief to the Saudi government, which relies heavily on the company’s barrel oil for earnings.

Armco, which produces all the oil and gas in the state, is at the center of Crown Prince Mohammed bin Salman’s (MBS) efforts to diversify the economy. The prince intends to use the proceeds to transfer Iraqi ownership to the country’s sovereign wealth fund and to strengthen new sectors for investment abroad and locally, and to create millions of new jobs for Saudi youth.

Amin Nasser, chief executive officer of Aramco, said first-quarter earnings were a sign of “better days ahead”.

“While some headaches still remain, we are in a good position to meet the world’s growing energy needs as the economy begins to recover,” he said.

The agency noted in its earnings report that while it is encouraging the development of vaccination programs around the world to combat COVID-19, the epidemic is far from over.

The company recently announced a 4 12.4 billion deal to sell its lease rights to its oil pipeline to a consortium of investors led by EIG Global Energy Partners. The sale is aimed at raising money to protect Aramco’s dividend promise to shareholders.

MBS revealed in an interview last week that Aramco is set to sell a 1 per cent stake to a top global power company. Although he did not elaborate, speculation has been rife about potential buyers from China, the world’s largest oil importer.

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