Aramco beats expectations with record quarterly profit of $42bn

Aramco beats expectations with record quarterly profit of $42bn

RIYADH: Saudi Aramco’s profit has surged 39 percent in the third quarter of 2022, surpassing the average of analysts’ forecasts. Profits of the most profitable oil company in the world hit SR159 billion ($42 billion) after revenue soared 51 percent to SR544 billion, according to a bourse filing. The crude producer said the results were primarily driven by higher crude oil prices and volumes sold. The oil giant was expected to post SR152 billion in net income, according to Bloomberg data, versus Al Rajhi Capital's projection of SR154 billion. Also, it was partly offset by a higher average effective royalty rate, due to stronger crude oil prices and increased sales volume, which resulted in an increase in production royalties. “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” said CEO Amin Nasser, commenting on the results. “While global crude oil prices during this period were affected by continued economic uncertainty, our long term view is that oil demand will continue to grow for the rest of the decade given the world’s need for more