Page 4 - DMEA Week 33 2022

DMEA COMMENTARY DMEA

Khursaniyah gas plant (Image: Saudi Aramco)
Aramco posts bumper

results for Q2-2022

Saudi Aramco has done it again, posting the highest profit figures

in the industry as demand recovers and crude oil prices remain high

MAJORITY state-owned Saudi Aramco well supplied and to facilitate an orderly energy
announced its Q2-2022 results this week, post- transition.”
WHAT: ing a 90% year-on-year increase in net profit on As has been de rigueur since its 2019 initial
Aramco posted a 90% in- the back of the two-thirds jump in the price of public offering (IPO), Aramco’s announcement
crease in net profit, while crude oil since the begiinning of the quarter. came with little detail on the development of its
oil and gas production The results back up previous statements from oil reserves, the key to the Kingdom’s financial
grew to 13.6mn boepd. the company’s president and CEO Amin Nasser, wellbeing.
who has repeatedly called for greater upstream
WHY: investment to cater to the coincidence of recov- Finances
The company is ben- ery from the coronavirus (COVID-19) pan- While the press has been quick to express con-
efiting from improved demic and conflict in Ukraine. sternation at the scale of oil company results as
downstream synergies, Commenting on the results, Nasser said: living costs spiral in many countries, the profits
while upstream income “Our record second-quarter results reflect announced by the majors pale in comparison to
has gained from high oil
prices. increasing demand for our products, particu- the $48.4bn net profit posted by Aramco. This
larly as a low-cost producer with one of the low- was almost $9bn higher than the three months
WHAT NEXT: est upstream carbon intensities in the industry.” prior and nearly double the level achieved in
Profits are being put to He added: “While global market volatility Q2-2021.
work, paying off debt and and economic uncertainty remain, events dur- The company said that the improved perfor-
funding a capital pro- ing the first half of this year support our view mance was “primarily driven by higher crude oil
gramme that will enable that ongoing investment in our industry is prices and volumes sold, as well as strong refin-
future oil output growth. essential, both to help ensure markets remain ing margins.”

P4 www. NEWSBASE .com Week 33 18•August•2022