Saudi Aramco on Sunday reported that its net profit surged to $30.4 billion for the third quarter of 2021 from $11.8 billion in the same period in 2020. That surpasses analysts’ median forecast of $28.4 billion. The sharp profit growth is mainly attributed to the 12% quarter-on-quarter increase in the company’s crude oil volumes and the rally in prices. Aramco’s free cash flow increased to $28.7 billion from $12.4 billion. It declared a dividend of $18.8 billion for the quarter ended September 30, as previously pledged.
Oil prices have climbed to multiple-year highs this year, partially thanks to OPEC+ decision to maintain its gradual output increase despite global supply concerns. Brent oil futures settled at $84.4 per barrel on Sunday, up about 63% since the start of the year. Meanwhile, benchmark US crude traded at around $83.57 per barrel, up just over 70% year-to-date.
Aramco shares gained 1% in early trade after it published its results. The company’s market capitalisation is just below Apple’s $2.46 trillion and above Alphabet’s $1.9 trillion valuations. Aramco’s capital spending increased 19% year-on-year to $7.6 billion in the third quarter.
