Saudi state oil company Saudi Aramco has announced its highest quarterly profit since the company went public in 2019, with high oil prices and improved refining margins driving the results.
Aramco is the latest oil supplier to announce bumper profits in recent weeks, following similar news from Exxon Mobil Corp (XOM.N) and BP. Price increases driven by western sanctions against Russia have been the major factor behind the increased profits.
The oil giant expects “demand to continue to grow for the rest of the decade despite downward economic pressures on short-term global forecasts,” CEO Amin Nasser said in Aramco’s earnings report.
Net profit increased 90% to 181.64 billion riyals ($48.39 billion) for the quarter to June 30th, up from 95.47 billion riyals one year previously. The results exceeded analyst expectations of $46.2 billion.
Aramco shares barely reacted to the news, with the stock already performing strongly having risen more than 25% this year. The company announced a second-quarter dividend of $18.8 billion to be paid in the third quarter.
Nasser raised concerns over a lack of global investment in hydrocarbons in a call with reporters, saying that spare capacity is “very limited”. He said Aramco is ready to increase oil output to its maximum sustained capacity of 12 million barrels per day should the Saudi government request this.
Aramco said its average total hydrocarbon production was the equivalent of 13.6 million barrels of oil per day through0 the second quarter. Nasser confirmed that the company is seeking to increase production from multiple energy sources to ensure both energy security and sustainability.