Aramco surpasses expectations with record profit for its fourth quarter

Aramco surpasses expectations with record profit for its fourth quarter, which was $42 billion

RIYADH: Saudi Aramco’s profits have risen 39 percent during the 3rd quarter of 2022, exceeding the median of analyst forecasts.

Profits from the oil giant with the highest profit worldwide topped SR159 billion ($42 billion) after revenue increased 50 percent, up to SR544 billion, as per an IPO filing.

The producer of crude oil said that the performance was primarily caused by the rising crude oil prices and the volume of products sold.

The oil company was predicted to record SR152 billion of net profits according to Bloomberg data, in contrast to Al Rajhi Capital’s forecast for SR154 billion.

It was also partially neutralized by a greater effective rate of royalty, because of higher crude oil prices as well as an increase in sales volumes that resulted in an increase in royalties for production.

“Aramco’s strong earnings and record free cash flow in the third quarter reinforce our proven ability to generate significant value through our low cost, lower-carbon intensity Upstream production and strategically integrated Upstream and Downstream businesses” stated CEO Amin Nasser in his remarks on the results.

As a result of the strong performance, Aramco maintained stable quarterly dividends of SR70.3 billion, which is the per-share payment that was SR0.3198 to be due in November. 28.

Capital expenditures during the quarter increased by $7.6 billion and reached $9 billion. Aramco continues to make investments and seize growth opportunities.

As for the performance of the quarter, Aramco outperformed with an increase of 68 percent in profits to SR489 billion, up from SR291 billion in the previous year.

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