Saudi Arabia’s ‘Shareek’ program could boost banking sector, BofA says
RIYADH: Saudi Aramco, the world’s largest oil company, said first-quarter net profit jumped more than 30% to reach SR 81.44 billion ($ 21.7 billion).
Sales also increased by more than a fifth to 272.1 billion rupees, helped by rising crude prices, improving downstream margins and the consolidation of SABIC – the Kingdom’s largest petrochemical producer.
Aramco declared a dividend of $ 18.8 billion in the first quarter, payable in the second quarter of the year, the company said in a stock exchange filing on Tuesday.
“The momentum provided by the global economic recovery has strengthened energy markets, and Aramco’s operational flexibility, financial agility and resilience contributed to a strong performance in the first quarter,” said Amin Nasser, President and Chief Executive Officer of Aramco. “Given the positive signs of energy demand in 2021, there is more reason to be optimistic that better days are approaching. And while some headwinds persist, we are well positioned to meet the world’s growing energy needs as economies begin to recover. “
The oil giant is at the heart of a multibillion-dollar spending plan to transform the Kingdom’s economy. Part of this transformation involves switching to cleaner energy sources, reducing harmful greenhouse gases through carbon capture technology, and developing alternative fuels such as hydrogen.
“We made further progress towards our strategic objectives during the quarter and our portfolio optimization program continues to identify value creation opportunities, such as the recent announcement of our landmark $ 12.4 billion deal on l ‘pipeline infrastructure,’ Nasser added. “We also expect the Shareek program, recently launched by Saudi Arabia, to present opportunities for growth, through incentives that encourage partnerships and investments.”
The company reported average total hydrocarbon production of 11.5 million barrels per day of oil equivalent in the first quarter of the year, including 8.6 million barrels per day of crude oil.
Oil companies have benefited from a gradual recovery in demand following the collapse in global energy demand that accompanied the spread of the coronavirus pandemic. The resumption of international air travel and the return of people to work in major economies, especially China, are expected to further support the price of oil this year.
However, industry optimism has been tempered by the surge in coronavirus cases in India, with infections in the country hitting the 20 million mark, hitting fuel demand in the world’s second most populous country. .
Aramco reported progress in its own immunization efforts with more than 178,000 Aramco employees, dependents and retirees receiving immunizations. This includes approximately 85 percent of Aramco’s workforce.