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Saudi Aramco's profits nearly quadruple as energy market rebounds

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·2-min read
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In this photo illustration a Saudi Aramco logo seen displayed on a smartphone with stock market percentages in the background. (Photo by Omar Marques / SOPA Images/Sipa USA)
Saudi Aramco's net income rose by 288% to $25.5bn for the second quarter. Photo: Omar Marques/SOPA Images/Sipa USA

Oil major Saudi Aramco (2222.SR) has seen its profits almost quadruple, as economies and borders opened up following coronavirus lockdowns.

The company said a joint boost of the easing of COVID-19 restrictions, vaccinations and stimulus from governments has propped up its results, with crude oil prices seeing a more than 30% rise since January.

The world's largest oil producer said it expects the good times to continue for the remainder of 2021.

Its net income rose by 288% to $25.5bn (£18.4bn) for the second quarter.

It expects its 2021 capital expenditures to be approximately $35bn, compared to $26.9bn in 2020.

It declared a dividend of $18.8bn in the second quarter, in line with its own target, which will be paid in Q3.

Shares moved 0.3% lower in early trade in London.

Other oil majors have seen similar wins in recent results, cheered by investors. Last week, BP (BP.L) announced a bumper payout for investors, as the oil giant's business rebounded strongly from the worst impact of the COVID-19 pandemic.

At the end of July, Shell (RDSA.L) also announced a $2bn (£1.4bn) share buyback programme. It said adjusted earnings headed to around $5.5bn during Q2 — outstripping last year's numbers by more than eight times.

Read more: Oil prices continue to slide as Delta infection rates raise recovery concerns

The news comes as oil prices dropped off from recent highs on Monday, extending last week's losses, as concerns rose off the back of new coronavirus crackdowns in Asia and a rising US dollar.

Brent crude futures (BZ=F) headed lower by $2.73, or 3.9%, to $67.97 (£49.73) a barrel by 10.15am in London, after having slumped 6% last week, their biggest weekly loss in four months.

US West Texas Intermediate (WTI) crude futures (CL=F) fell $2.82, or 4.1%, to $65.46 a barrel, after having slumped nearly 7% last week in their steepest weekly decline in nine months.

Watch: What are SPACs?

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