Saudi Aramco recorded a 90% surge in second quarter net income © Ahmed Salahuddin/NurPhoto via Getty Images
Saudi Aramco recorded a 90% surge in second quarter net income © Ahmed Salahuddin/NurPhoto via Getty Images

Saudi oil giant makes record $50bn profits as prices surge

16 August 2022

Saudi Aramco recorded a 90% surge in second quarter net income as oil companies reap the benefits of high oil prices.

Strong market conditions helped quarter two net income rise to $48.4bn – up $25.5bn year-on-year. The result exceeded analysts’ estimates of $46.2bn.

Amin Nasser, Aramco president and CEO, said: “Our record second-quarter results reflect increasing demand for our products – particularly as a low-cost producer with one of the lowest upstream carbon intensities in the industry.” 

Its half year net income of $87.9bn put the Saudi oil giant well ahead of competitors such ExxonMobil, Chevron and BP – all of which are benefiting from oil prices that have risen above $130 dollars a barrel this year.

“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential – both to help ensure markets remain well supplied and to facilitate an orderly energy transition,” Nasser added.

After several years of falling oil prices, Aramco is now predicting the resurgence in prices to last for the rest of the decade.

And having spent years looking to diversify its economy away from hydrocarbons, the Saudi government is welcoming a second quarter budget surplus of $21bn. 

In its results announcement, state-owned Aramco also revealed plans to expand its Namaat industrial investment programmes to localise supply chains.

“Fifty-five agreements and memoranda of understanding (MoUs) are now in place across the sustainability, digital, industrial, manufacturing and social innovation sectors, aiming to create jobs for Saudis and expand the kingdom’s energy and chemicals value chains,” said Aramco.

Last week the company also signed an MoU with China’s second largest oil company, Sinopec.

The two companies are aiming to collaborate in areas such as procurement, carbon capture and hydrogen production, as well as engineering and construction, oilfield services, and upstream and downstream technologies.

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