Saudi Aramco net profit soars 82% in Q1 on high oil prices By Reuters

By Hadeel Al Sayegh and Saeed Azhar

DUBAI (Reuters) -State-owned oil producer Saudi Aramco (TADAWUL:) on Sunday reported an virtually 82% rise in first-quarter internet revenue, broadly in keeping with analyst forecasts, helped by robust oil costs.

Aramco, which is at par with Apple Inc (NASDAQ:) because the world’s most dear firm, reported a internet earnings of $39.5 billion for the quarter to March 31 from $21.7 billion a yr earlier.

The world’s high oil exporter was forecast to submit a internet earnings of $38.5 billion, in response to a median estimate from 12 analysts supplied by the corporate.

Aramco, which listed in 2019 with the sale of a 1.7% stake primarily to the Saudi public and regional establishments, stated its earnings had been the very best in any quarter because it went public, boosted by crude costs, volumes offered and improved downstream margins.

Earnings by world vitality firms comparable to BP (NYSE:) and Shell (LON:) have risen to their highest in not less than a decade on the again of rising commodities costs, at the same time as a lot of them incur largely write-downs from exiting Russia.

costs ended the primary quarter up virtually 70% to $107.91 a barrel from finish of March 2021.

OPEC+ agreed this month to a different modest enhance in its month-to-month oil output goal, arguing it couldn’t be blamed for disruptions to Russian provide which have pushed up costs. It additionally stated China’s coronavirus lockdowns was threatening the outlook for demand.

“Our view is Brent will find yourself decrease within the second half of the yr and so we predict (Aramco) earnings to tug again and for the second quarter to be a peak,” stated Yousef Husseini, affiliate director for fairness analysis at EFG Hermes.

The corporate declared a dividend of $18.8 billion to be paid within the second quarter, in keeping with market expectations, and authorised the distribution of 1 bonus share for each 10 shares held within the firm.

Aramco stated it noticed improved downstream margins within the first quarter and is seeking to develop alternatives within the downstream sector.

“Through the first quarter, our strategic downstream growth progressed additional in each Asia and Europe, and we proceed to develop alternatives that complement our development targets,” Aramco CEO Amin Nasser stated in an announcement.

Shares of the corporate have risen 37% because the begin of the yr, outperforming the Saudi index which is up almost 14%.