Saudi Aramco announces 288% increase in Q2 profits

The Saudi Arabian oil giant Aramco has announced a 288% increase in Q2 profits from the same quarter of last year to $25.5 billion and declaring a dividend of $18.8 billion.

Aramco’s net income for the first half of the year was $47.2 billion a increase of 103% over the same period in 2020.

The increased income were primarily driven by higher oil prices and a recovery in worldwide demand and also by the eased restrictions, vaccination campaigns, stimulus measures and accelerating activity in key markets.

The President & Chief Executive Officer of Aramco, Amin H. Nasser, said:

“Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum. While there is still some uncertainty around the challenges posed by COVID-19 variants, we have shown that we can adapt swiftly and effectively to changing market conditions.

The net income was $47.2 billion for the first half of 2021, compared to $23.2 billion in the first half of 2020 and the net income was $25.5 billion in the second quarter of 2021, compared to $6.6 billion in the same quarter of 2020.

The increase of income in both periods was primarily driven by higher crude oil prices, the consolidation of SABIC’s results and improved downstream margins, partially offset by lower crude oil volumes sold and higher crude oil production royalties.

Earlier in 2021 Aramco had closed a pipeline infrastructure deal with an international consortium for $12.4 billion, acquiring a 49% stake in the newly formed Aramco Oil Pipelines company under a 25-year lease and leaseback agreement.

Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilised crude oil flows, backed by minimum volume commitments.

The company has raised $6 billion through the sale of US dollar-denominated Shari’a-compliant securities to leading institutional investors.