Saudi Aramco makes second highest profit on surging oil prices

Saudi Aramco reported its second-highest earnings as a listed company, as it continued to benefit from this year’s surge in oil and gas prices.

Aramco’s net income was $41.6bn in the third quarter, slightly above analysts’ expectations.

That was down from a record profit of $48bn between April and June, but up around 40 per cent year-on-year.

The company kept its dividend, the world’s largest unchanged at $18.8bn for the quarter, despite generating cashflow of almost double that amount.

Its gearing ratio, a measure of net debt to equity, turned negative for the first time since early 2020, underscoring the sharp improvement in business conditions for Aramco since the start of the coronavirus pandemic.

Oil prices have declined from 14-year highs March as rising inflation and monetary tightening from central banks slow the global economy. Yet Brent futures have still gained more than 20 per cent this year and are trading around $93.50 a barrel.

“While global crude oil prices during this period were affected by continued economic uncertainty, our longterm view is that oil demand will continue to grow for the rest of the decade,” CEO Amin Nasser said in a statement.

In recent news, Aramco has announced it will set up a $1.5bn sustainability fund to invest in technology that supports a stable and inclusive energy transition.

Read: Aramco to set up $1.5bn sustainability fund