- Saudi firm made net profit of $42 billion; dividend unchanged
- Company’s gearing ratio turns negative as conditions improve
According to Bloomberg’s article published on November 1, 2022, Saudi Aramco reported its second-highest earnings as a listed company, as it continued to benefit from this year’s surge in oil and gas prices.
Aramco’s net income was $41.6 billion in the third quarter, slightly above analysts’ expectations. That was down from a record profit of $48 billion between April and June, but up around 40% year-on-year.
The company kept its dividend -- the world’s largest -- unchanged at $18.8 billion for the quarter, despite generating free cashflow almost $10 billion more than that. Its gearing ratio, a measure of net debt to equity, turned negative for the first time since early 2020, underscoring the sharp improvement in business conditions for Aramco since the start of the coronavirus pandemic.
Oil prices have declined from 14-year highs March as rising inflation and monetary tightening from central banks slow the global economy. Yet Brent futures have still gained more than 20% this year and are trading around $93.50 a barrel.
The company kept its dividend -- the world’s largest -- unchanged at $18.8 billion for the quarter, despite generating free cashflow almost $10 billion more than that. Its gearing ratio, a measure of net debt to equity, turned negative for the first time since early 2020, underscoring the sharp improvement in business conditions for Aramco since the start of the coronavirus pandemic.
Oil prices have declined from 14-year highs March as rising inflation and monetary tightening from central banks slow the global economy. Yet Brent futures have still gained more than 20% this year and are trading around $93.50 a barrel.
