Aramco Saudi Arabiathe world’s largest oil company, revealed an 82 per cent increase in quarterly profit to a new record high of $39.5 billion (£32.2 billion), boosted by rising demand and higher crude oil prices.
Which company last week It outperformed Apple’s technology group To become the world’s most valuable company, it said it would pay out $18.8 billion (£15.3 billion) in dividends and hand over $4 billion (£3.2 billion) in bonus shares to its investors after better-than-expected performance.
Energy companies such as BP and Shell posted their highest profits in at least a decade as a result of soaring commodity prices fueled by the removal of Covid-19 restrictions around the world and sanctions imposed on Russia after its invasion of Ukraine.
Energy prices were also driven by strong demand in Asia for gas and a cold winter in 2020 that depleted supplies, leaving stocks low as temperatures cooled in the northern hemisphere last year. Profits rose despite several groups being hit by an exit from investments in Russia as Brent crude prices rose nearly 70% to $107.91 (£87.99) a barrel in March from a year earlier.
BP said this month Profits doubled to $6.2 billion (£ 5 billion) in the first three months of the year. Shell mentioned Standard Quarterly Profit $9.1 billion (£7.3 billion) for the first three months of the year.
OPEC+, the group of producers that includes Kingdom Saudi ArabiaThe United Arab Emirates and Russia agreed this month to a modest increase in their monthly oil production target, but said other producers could not replace Russian exports of more than seven million barrels per day.
Aramco has a particularly low cost of production, as much of its oil is in easily accessible fields onshore or in shallow waters. This boosts profitability at the company, which is still 95% owned by the Saudi government.
Amin Nasser, Aramco’s president and CEO, said the company is helping meet global demand for reliable and affordable energy against a background of “increasing volatility.”
“Energy security is vital as we are investing in the long term, expanding our oil and gas production capacity to meet projected demand growth,” he said.
“As we collaborate with local and international partners to explore new and emerging technologies and solutions, from developing cleaner transportation technologies to creating low-carbon value chains for hydrogen and ammonia, I am more optimistic than ever about the positive contribution we can make, for our customers and the ongoing global energy transition. “.