Saudi Aramco q2 profit surges 90% on higher oil prices

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Saudi Aramco q2 profit surges 90% on higher oil prices

Saudi Aramco reported a soaring 90% rise in second-quarter profit on Sunday, beating analyst expectations and propelled by higher oil prices, volumes sold and refining margins.

Aramco chief executive Amin Nasser said in the earnings report that the company expects to grow for the rest of the decade despite downward economic pressures on short-term global forecasts.

Aramco's net profit rose to 181.64 billion riyals ($48.39 billion) from 95.47 billion riyals a year ago.

According to the mean estimate from 15 analysts, analysts had expected a net profit of $46.2 billion.

In the second quarter, it declared a dividend of $18.8 billion, in line with its own target, which will be paid in the third quarter.

Aramco shares have gone up over 25% this year as oil and natural gas prices have gone up multi-year highs after Western sanctions against major exporter Russia squeezed an already under-supplied global market.

Aramco is one of several oil majors that have reported strong results in the past few weeks.

Exxon Mobil Corp posted its biggest quarterly profit on July 29th, a net income of $17.9 billion, an almost four-fold increase over the year earlier in the year.

Margins for making fuels, such as gasoline and diesel, increased worldwide, boosting the profits of oil giants, including European majors Shell and TotalEnergies, both of which reported results on July 27.

Aramco said it had produced 13.6 million barrels of oil equivalent per day in the second quarter.

There is a real and present need to safeguard the security of energy supplies, but climate goals remain critical, which is why Aramco is working to increase production from multiple energy sources, including oil and gas, as well as renewables, and blue hydrogen. Nasser said something.

Capital expenditure increased by 25% to $9.4 billion in the second quarter, compared to the same period in 2021.

Aramco said it continued to invest in growth, expanding its chemicals business and developing prospects in low-carbon businesses.