Saudi Aramco’s profit soared to nearly $40 billion in the first quarter of 2022, the highest since the company’s IPO, on the back of higher oil prices and increased output.
The profit was a nearly 82% increase from the same period last year, in which the company saw a profit of $21.7 billion during the first quarter of 2021.
Amin Nasser, CEO of Saudi Aramco.
The company said it would pay an $18.8 billion dividend and offer $4 billion in bonus shares to its investors after the better-than-expected performance.
Free cash flow rose for the quarter 68% to $30.6 billion, and cash flow from operating activities was $38.2 billion compared to $26.5 billion in the previous year, according to reports.
Saudi Aramco overtook Apple as the world’s most valuable company last week as oil prices continued to be elevated after Russia’s invasion of Ukraine upended global energy markets.
According to MarketWatch, in a statement, Aramco’s chief executive attributed the spike in profits to rising prices as well as the kingdom’s increase in production, and appeared to suggest that the disruption from the war in Ukraine had underscored the vital role of oil and gas companies like Aramco.
“Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world’s demand for energy that is reliable, affordable and increasingly sustainable,” President and CEO Amin H. Nasser said.
Shares of Aramco jumped 1.85% on Sunday on the earnings report, with a share costing 41.40 Saudi riyals, or $11.04 on the Tadawul stock market.
