Tuesday 23rd July 2024

Saudi Aramco: Profits increase for the oil giants as prices hike.

Published on : 15 May, 2022 4:23 pm

Kathmandu: As oil and gas prices rise around the world, Saudi Aramco has reported its highest profits since its 2019 listings.

The company stated in a press release that higher prices and increased production helped them prosper. Profits at the state-owned energy company increased by 82 percent in the first quarter, exceeding $39.5 billion (£32.2 billion).

Oil and gas costs have risen dramatically since the invasion in Ukraine. Before the Ukraine war, oil prices were already climbing as economies were recovering from the pandemic and demand outweighed supply.

Other energy companies, like Shell, BP, and TotalEnergies too have seen their earnings surge as a result, while many are experiencing losses as they quit operations in Russia.

Amin Nasser, Aramco’s president and chief executive, said on Sunday that the business is “committed on helping fulfill the world’s demand for reliable, affordable, and increasingly sustainable energy.” “Energy security is critical, and we are making long-term investments,” he further added.

Saudi Arabia is the largest producer in the Opec (Organization of Petroleum Exporting Countries) oil cartel, and increasing output could help lower the energy prices.

Its most recent set of figures come only days after Aramco regained the top place as the world’s most valuable business from Apple for the first time in nearly two years. On Sunday, Aramco also announced that it would issue 20 billion bonus shares to shareholders, one for every ten existing shares.

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