Source of the photo: Wikipedia.org
Aramco, the world’s biggest energy company made in the second quarter of 2021 a net profit of $25.5 billion, the highest level since the end of 2018.
The reopening of major economies has triggered a surge in commodity prices, with crude up around 40% in 2021.
Aramco’s annual dividend of $75 billion, the world’s largest, is the main source of funding for Saudi Arabia. The Saudi government, which owns 98% of the company, is trying to narrow a budget deficit that increased last year as energy prices tanked with the spread of the virus.
On August 8th, 2021, Amin NASSER, the CEO of Aramco, said in a statement that the 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”. “I remain extremely positive about the second half of 2021 and beyond” he added.
“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” Amin NASSER said.
The oil giant also benefitted from its strategy to optimize its portfolio, announcing billion dollar deals in recent months, as well as their plan to focus on sustainability and low-carbon fuels.
“Our historic $12.4bn pipeline deal was an endorsement of our long-term business strategy by international investors, representing significant progress in our portfolio optimization program. Our landmark $6bn Sukuk reinforced our robust balance sheet, further diversifying our funding sources and expanding our investor base.” NASSER added.
“We continue to move forward on a number of strategic programs, which focus on sustainability and low-carbon fuels, maximizing the value of our assets, and advancing our downstream integration and expansion journey”.
Aramco is the latest major energy firm to report strong results in recent weeks.
Last month, US energy company Exxon Mobil posted a rise in income of $4.7bn in the second quarter, compared to a loss of more than $1bn for the same period of 2020.
European Royal Dutch Shell reported its highest quarterly profit in more than two years.
With economies easing Covid-19 restrictions and opening up, global demand is recovering, boosting the price of oil.
Brent crude has also been boosted to around $70 a barrel after the Organization of the Petroleum Exporting Countries and its allies, (OPEC+), agreed to cut oil production.
This article was edited using the data from the Aljazeera.com, Granthshala.com, Bbc.com, Gulfnews.com, and Arabianbusiness.com.