Saudi Arabian state oil producer Aramco reported a near four-fold rise in second-quarter net profit on Sunday, boosted by higher oil prices and a recovery in oil demand.
Aramco said its results were supported by the easing of COVID-19 restrictions, vaccination campaigns, stimulus measures and accelerating economic activity in key markets.
Oil prices, boosted by output cuts made by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, closed at $70.70 a barrel on Friday and has gained over 35 percent since the start of the year.
“Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum,” Aramco CEO Amin Nasser said.
Aramco’s net profit rose to 95.47 billion riyals ($25.46 billion) for the quarter to June 30 from 24.62 billion riyals a year earlier.
Aramco’s CEO told an earnings call that global oil demand was expected to hit 99 million barrels a day by the end of the year and 100 million barrels next year.
Aramco is still working to increase its own capacity to 13 million barrels day, Nasser said, reiterating a plan announced last year.
Aramco’s capital expenditure was $7.5 billion in the second quarter, an increase of 20 percent from a year earlier.
A consortium including Washington DC-based EIG Global Energy Partners in June closed a deal to buy 49 percent of Aramco’s pipelines business for $12.4 billion.
Aramco joins other oil majors who have reported strong results in recent weeks.
Exxon Mobil said its net income for the second quarter came in at $4.69 billion, or $1.10 per share, compared with a loss of $1.08 billion, or 26 cents per share, a year ago.
Royal Dutch Shell reported its highest quarterly profit in more than two years, with adjusted earnings at $5.53 billion, compared with earnings of $638 million a year earlier, Reuters reported.
Aramco achieved 100 percent reliability in the delivery of crude oil and other products in the second quarter of 2021.
Aramco demonstrated its reliable Upstream performance, with average total hydrocarbon production of 11.7 million barrels per day of oil equivalent in the second quarter of 2021.