Energy giant Saudi Aramco on Tuesday announced a 30% increase in first-quarter profits as a sign of recovery from last year’s oil market crash, boosted by a coronavirus pandemic.
Aramco said net profits for the first three months of the year increased to $ 21.7 billion, compared to $ 16.7 billion in the same quarter of 2020 due to strong oil markets and increased refining and chemical margins. Said.
Bumper results follow strong profits announced last month by major oil companies such as Total in France, BP in the UK and Groupshell in the Netherlands, as the recovery in oil prices helped the recovery from the pandemic.
“The momentum brought about by the recovery of the global economy has strengthened the energy market,” Aramco CEO Amin Nacelle said in a statement.
“Aramco’s operational flexibility, financial agility, and employee resilience contributed to the strong performance in the first quarter.”
Strong earnings bring peace of mind to Saudi Arabia’s dollar box, Aramco. Aramco has shown a continuous decline in profits since it began disclosing earnings in 2019.
The company’s low earnings put pressure on government finances as Riad faces a growing budget deficit and pursues multi-billion dollar projects to diversify its oil-dependent economy.
Saudi Arabia is currently seeking to monetize its energy assets as it seeks new sources of revenue to fund the promotion of ambitious diversification.
Aramco said last month it signed a $ 12.4 billion deal to sell a minority stake in its newly established oil pipeline business to a consortium led by US-based EIG Global Energy Partners.
Long seen as the kingdom’s “jewel of the crown,” Aramco and its assets were once considered tightly controlled by the government and off limits to external investment.
However, the kingdom is prepared to give up some control as Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, is accelerating efforts to implement the Vision 2030 reform program. It shows that.
In late April, Prince Mohammed said Saudi Arabia, the world’s largest oil exporter, was in talks to sell 1 percent of Aramco to an unnamed foreign energy company.
Aramco previously sold its share sliver on the Saudi Arabia Stock Exchange in December 2019, generating $ 29.4 billion in the world’s largest initial public offering.
The energy giant could announce another offer of shares to international investors within the next year or two, the prince said.
In the promotion of major new diversification in March, Saudi Arabia announced plans to invest $ 3.2 trillion worth of investment in the national economy by 2030 to acquire the kingdom’s largest companies, including Aramco.
Prince Mohammed said Aramco and other top Saudi Arabian companies will lead the investment drive by donating 5 trillion riyals ($ 1.3 trillion) over the next decade under a program named “Shareek” or a partner. It was.
Saudi Aramco Q1 Profits Jump 30% On Oil Market Recovery Source link Saudi Aramco Q1 Profits Jump 30% On Oil Market Recovery