Page 10 - MEOG Week 18 2021

MEOG PERFORMANCE MEOG

Aramco Q1 results provide stability

SAUDI ARABIA SAUDI Aramco announced its Q1 results this Aramco cited “a stronger oil market and
week, recording a net profit of $21.7bn, up from higher refining and chemicals margins, partly
$16.7bn during the same period last year. offset by lower production” as the drivers for its
Aramco followed other oil majors in 30% increase in net profit, while capital expend-
announcing improved performance on the back iture was $8.2bn.
of oil prices having risen by roughly a third and In accordance with OPEC+ restrictions and
remained stable in recent months. The company Saudi Arabia’s unilateral voluntary extra cut of
also maintained its dividend commitment, pay- 1mn barrels per day, Aramco’s total hydrocar-
ing out $18.75bn for Q4 2020, and said it would bon production dropped to 11.5mn barrels of oil
pay the same amount for Q1. equivalent per day down from the 2020 full-year
Company president and CEO Amin Nasser average of 12.4mn boepd, with crude falling by
said: “The momentum provided by the global 600,000 bpd to 8.6mn bpd during Q1.
economic recovery has strengthened energy The company benefited from an $8.4 per bar-
markets, and Aramco’s operational flexibility, rel increase in the realised price of crude com-
financial agility and the resilience of our employ- pared to Q1 2020, which averaged $60.2. The
ees have contributed to a strong first-quarter fruits of OPEC+ restraint are particularly glar-
performance. For our customers we remain a ing when noting that Aramco’s realised price per
supplier of choice, and for our shareholders we barrel averaged $40.6 over full-year 2020.
continue to deliver an exceptional quarterly Meanwhile, it was buoyed by the integrating
dividend [...] Given the positive signs for energy the operations of Saudi Basic Industries Corp.
demand in 2021, there are more reasons to be (SABIC) as chemical margins rose, leading to
optimistic that better days are coming.” a 188% increase in Q1 earnings before interest,
While the tone was broadly optimistic, he income taxes and zakat, amounting to $4.4bn.
added that “while some headwinds still remain, This is particularly encouraging given that
we are well-positioned to meet the world’s grow- full-year earnings for 2020 represented a loss of
ing energy needs as economies start to recover”. $5.4bn.™

P10 www. NEWSBASE .com Week 18 05•May•2021