Saudi Aramco’s Third Quarter Net Profit More Than Doubles


Saudi Aramco's Third Quarter Net Profit More Than Doubles

Aramco’s third quarter net profit more than doubled due to higher crude prices

Saudi Arabian state oil producer Aramco said on Sunday its third-quarter net profit more than doubled, boosted by higher crude oil prices and volumes sold, beating analysts forecasts.

Net income jumped to $30.4 billion for the quarter to September 30 from $11.8 billion a year earlier, it said in a bourse filing. That was above the median net profit forecast of $28.4 billion from four analysts.

“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,” Amin Nasser, Aramco’s chief executive, said in a statement.

Oil prices have rallied to multi-year highs with global crude futures climbing 4.5 per cent in the quarter, helped by the decision by OPEC+ to maintain its planned output increase rather than raising it on global supply concerns.

Brent oil futures are trading around $84.4 a barrel, up about 63 per cent so far this year, while benchmark US crude is at roughly $83.57 a barrel, up just over 70 per cent over the same period.

Aramco’s capital expenditure rose 19% from a year earlier to $7.6 billion in the quarter.

The company’s free cash flow rose to $28.7 billion from $12.4 billion. It declared a dividend of $18.8 billion for the third quarter, in line with its guidance.

Higher oil prices and volumes have boosted Aramco’s share price nearly 8 per cent this year, valuing the oil giant at $2 trillion.