RIYADH (Realist English). Oil giant Aramco reported a more-than 80% jump in net profit Sunday, topping analyst expectations and setting a new quarterly earnings record since its IPO. This is reported by CNBC.
The Saudi Arabian behemoth 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 forecast net income of $38.5 billion dollars. It also kept its enormous dividend stable at $18.8 billion dollars.
“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,” Aramco President and CEO Amin Nasser said in the earnings release Sunday. “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.”
With a market cap of around $2.43 trillion on Wednesday, Aramco last week surpassed Apple to become the world’s most valuable company. The companies’ market caps looked similar on Sunday.
Aramco stock is up over 15% so far in 2022. In March, the oil giant reported that its full-year profit last year more than doubled due to the ongoing rise in oil prices, driven higher by Russia’s invasion of Ukraine, looming European Union sanctions on Russian oil and the prospect of tighter supply.
The company said it would use $4 billion dollars in retained earnings to distribute bonus shares to shareholders — amounting to one share for every 10 shares held.
On May 13, oil prices rose by about 4%. Brent crude futures rose $3.97, or 3.7%, to $111.42 per barrel, while WTI crude rose $4.38, or 4.1%, to $110.51.
Gasoline prices in the United States have jumped to a record high amid expectations around the oil embargo that the European Union plans to impose against Russia.
