Saudi Aramco announced that it had achieved a 39% increase in its profits during the third quarter of 2022, compared to the same period last year, thanks to the high oil prices caused by the ongoing war in Ukraine.
The giant oil company’s announcement comes with the OPEC Plus cartel reducing oil production by two million barrels a day, in a decision that angered Washington, which it considered to “align with Russia” during the war.
Aramco said in a statement that “net profit was 159.12 billion riyals ($ 42.43 billion) for the third quarter of 2022, compared to 114.09 billion Saudi riyals ($ 30.43 billion) for the same quarter of 2021 “and indicated that” the increase in net profit is mainly driven by the increase in crude oil prices, as well as the quantities sold “.
Saudi Aramco chairman and chief executive Amin Nasser praised “strong earnings and record free cash flow,” which went from $ 28.7 billion in the third quarter of last year to $ 45 billion in the third quarter of this year. ‘year.
Nasser said, “With global crude oil prices affected during this period due to continuing economic uncertainty, our long-term view is that crude oil demand will continue to grow for the rest of the current decade given the global need to more reliable products and affordable energy ”.
Aramco, the world’s second-largest company in terms of value with around two trillion dollars after the American Apple, is the kingdom’s main source of income. Ellen Wald, author of a book on the history of Saudi oil giant Aramco, said the company is well positioned to benefit from high energy prices, as it has “lower production costs by a huge margin” compared to other oil companies. .
The continuation of Aramco’s huge returns led to a distinct business year for Saudi Arabia, with financial surpluses that could help finance Crown Prince Mohammed bin Salman’s ambitious plans to diversify its oil-dependent economy.
And on Monday, Saudi Arabia announced it had achieved gross domestic product growth in the third quarter of this year of 8.6% year-on-year, “driven by oil sector revenue growth,” according to quick estimates revealed. by the General Statistical Authority. According to the International Monetary Fund, Saudi Arabia’s gross domestic product is expected to grow by 7.6% in 2022.
