Saudi Aramco quarterly profit more than doubles on multi-year high oil price, volumes

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Saudi Aramco quarterly profit more than doubles on multi-year high oil price, volumes

Saudi Aramco, the OPEC-kingpin Saudi Arabia’s state-backed energy industry mogul and the world’s most profitable company by an unaudited basis, had reported on Sunday that its third-quarter net profit had more than doubled and handsomely beaten an analysts’ estimate, mostly buoyed up by a higher crude oil prices which have been hovering close to their multi-year peaks.

On top of that, a jubilant Q3, 2021 earnings that followed a higher crude prices alongside an increase in export volumes, had heaved Aramco’s market valuation above a whopping $2 trillion, a goal long-sought by the Saudi Crown Prince Mohammed bin Salman.

Aside from that, Q3, 2021 profit has been the Saudi Aramco’s best quarterly performance since it began public market trading back in December 2019, as Aramco’s oil sales volumes picked up sharply over the latest quarter amid an insurgence in demands following a dour 2020.

Besides, followed by Aramco’s upbeat July-to-September quarterly earnings’ report, Aramco Chief Amin Nasser said in a statement, “Our exceptional third quarter performance was a result of increased economic activity in key markets and a rebound in energy demand, as well as our unique low-cost position.

Aramco shares had closed out the 0.4 per cent higher after jumping as much as 1.0 per cent shortly after the release of its quarterly earnings’ report.

Aramco Q3 profits soar

According to Aramco, the Saudi state-backed fossil-fuel giant’s net income surged to $30.4 billion over the latest quarter that ended on September 30 compared to $11.8 billion scored at the same time a year earlier, well above a median net profit forecast of $28.4 billion.

Besides, as Brent crude and US crude jumped as much as 63.0 per cent and 70.0 per cent thus far this year respectively, Aramco’s free cash flow took a torrential high tide to $28.7 billion compared to a $12.4 billion notched at the same time a year earlier, while the oil behemoth had declared a dividend of $18.8 billion for the quarter.