Saudi Aramco says Q1 profits jump 82pc as oil prices surge

Logo of Saudi Aramco is seen at the 20th Middle East Oil and Gas Show and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017. — Reuters pic
Logo of Saudi Aramco is seen at the 20th Middle East Oil and Gas Show and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017. — Reuters pic

RIYADH, May 15 — Energy giant Saudi Aramco posted today an 82 per cent jump in first quarter profits, buoyed by the surge in oil prices that has made it the world’s most valuable company.

The announcement continued a string of recent positive economic news for Saudi Arabia, where a booming oil sector is fuelling the fastest growth rate in a decade.

Aramco’s net income of US$39.5 billion was up from US$21.7 billion in 2021, “primarily driven by higher crude oil prices and volumes sold, and improved downstream margins,” it said in a press release.

The latest financial results were published four days after Aramco dethroned Apple as the world’s most valuable company, with shares worth US$2.42 trillion compared to Apple’s US$2.37 trillion.

In March, Aramco reported a 124 per cent net profit surge for 2021.

But the company, the kingdom’s “crown jewel” and a key source of government revenue, faces security challenges related to an ongoing war by a Saudi-led military coalition against Yemen’s Huthi rebels, who have repeatedly targeted the kingdom, including Aramco sites.

In 2019, Huthi-claimed aerial assaults on two Aramco facilities in eastern Saudi Arabia temporarily knocked out half of the kingdom’s crude production.

A March attack by the Huthis on Aramco facilities caused a “temporary” drop in production.

In early May, Saudi Arabia reported its fastest economic growth rate in a decade, as a booming oil sector fuelled a 9.6 per cent rise in the first quarter over the same period of 2021.

The world’s biggest oil exporter has resisted US entreaties to raise output in an attempt to rein in prices that have spiked since the Ukraine war began. — AFP