Saudi Aramco’s profit surges nearly 300 per cent
A partial view of Saudi Aramco’s Abqaiq oil processing plant on September 20, 2019. (Photo by FAYEZ NURELDINE/AFP via Getty Images)
ENERGY giant Saudi Aramco’s second quarter profits for 2021 have surged nearly 300 per cent, recovering to pre-pandemic levels.
The company said on Sunday (8) its net profit rose to $25.5 billion (£18.4bn) in the second quarter of 2021, compared to $6.6bn (£4.7bn) in the same quarter last year due to a stronger oil market and higher refining and chemicals margins.
Easing of Covid-19 restrictions also helped in boosting profit, it said.
Crude oil prices have risen by more than 30 per cent since the start of the year.
“Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum,” Aramco chief executive Amin Nasser said in a statement.
In 2020, Aramco posted a 44.4 per cent slump in net profit, piling pressure on government finances as Riyadh pursues its multi-billion dollar projects to diversify the economy.
Last year, the company’s debt had climbed, when Saudi Arabia faced the double whammy of low prices and sharp cuts in production triggered by the pandemic.
Meanwhile, last month the world’s leading oil producers agreed to modestly boost output from August, reaching a compromise after the United Arab Emirates blocked a deal.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies decided to raise output by 400,000 barrels per day (bpd) each month from August to help fuel a global economic recovery as the pandemic eases.