Energy giant Saudi Aramco said on Sunday, August 8, that its profits in the second quarter of 2021 almost tripled compared with the same period last year due to rising oil prices. Saudi Aramco also announced that it would distribute $18.8 billion in dividends in the second quarter. Dividends.
Saudi Aramco said its net profit rose to $25.5 billion in the second quarter of this year due to a stronger oil market, higher refining and chemicals margins, and an easing of epidemic restrictions. The same period in 2020 was $6.6 billion.
Saudi Aramco CEO Amin Nasser said in a statement: “Our second quarter results reflect the global energy With a strong rebound in demand, as the global recovery gains momentum, we will be more resilient and flexible in the second half of 2021.”
Nasser said at the earnings conference that it is expected that by this year Global oil demand will reach 99 million barrels per day at the end of the year and 100 million barrels next year, while the company is still working to increase its own production capacity to 13 million barrels per day.
Rising oil prices in the second quarter pushed up earnings for energy giants. ExxonMobil said last month that its second-quarter net income was $4.69 billion, while It lost $1.08 billion in the same period a year ago; Royal Dutch Shell posted its highest quarterly profit in more than two years, with adjusted earnings of $5.53 billion, compared with $638 million in the same period last year.
About two months after Saudi Aramco said it had raised $6 billion in its first dollar-denominated Islamic bond sale, the company reported first-quarter net profit in May grew 30% to $21.7 billion.
The energy giant’s net profit fell 44.4% in 2020, while the kingdom presses ahead with its multi-billion dollar projects to diversify the economy, putting a strain on government finances pressure.
Saudi Aramco has long been regarded as the “crown jewel” of the Saudi economy. Its assets were once strictly controlled by the government and outside investment was prohibited. But with the rise of Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler, who is accelerating the implementation of his Vision 2030 reform plan, the kingdom is ready to relinquish some control.
Saudi Aramco previously sold a small portion of its shares on the Saudi Stock Exchange in December 2019, bringing in $29.4 billion for its 1.7% stake. In April, the company said it had reached a $12.4 billion deal to sell a minority stake in its newly formed oil pipeline business to a consortium led by U.S.-based EIG Global Energy Partners.
Some analysts have expressed concern about drone and missile attacks on Saudi Aramco facilities, and there are growing concerns about cyberattacks, with Aramco confirming last month that company data had been removed from it The leak occurred at a contractor, but the company said it had “no impact” on operations. </p
