Aramco nearly doubles net profit to $48.4 bn in Q2

Saudi Aramco

Saudi Arabian Oil Company (Aramco) has reported net profit of $48.4 billion in the second quarter of 2022 as compared to $25.5 billion in Q2 2021.

Aramco’s half-year net income touched $87.9 billion against $47.2 billion.

The increase in both periods was primarily driven by higher crude oil prices and volumes sold, as well as strong refining margins during the second quarter and higher downstream margins in the first half of 2022.

Aramco joins oil majors such as Exxon Mobil and BP that have reported strong or record breaking results in recent weeks.

In July, Exxon posted its biggest quarterly profit ever, a net income of $17.9 billion, an almost four-fold increase from a year earlier. European majors Shell and TotalEnergies  benefited from surging margins for making fuels like gasoline and diesel, Reuters news report said.

Aramco said its average total hydrocarbon production was 13.6 million barrels of oil equivalent per day in the second quarter.

Aramco President & CEO Amin H. Nasser, 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.”

Return on average capital employed (ROACE) for the second quarter and half year ended June 30, 2022, was 31.3 percent, compared to 16.7 percent for the same periods in 2021, reflecting stronger crude oil prices and volumes sold, and improved downstream margins.

Aramco is working to increase production from multiple energy sources, including renewables and blue hydrogen as well as oil and gas, as it works on both energy security and climate goals.

Capital expenditure of Aramco rose 25 percent to $9.4 billion in the second quarter and by 8 percent to $16.9 billion in the first half of 2022. Aramco invested in growth opportunities, progressing the integration of its upstream and downstream segments, expanding its chemicals business, and developing prospects in low-carbon businesses.

Aramco achieved average hydrocarbon production of 13.6 million barrels of oil equivalent per day in the second quarter of 2022. Aramco increased its crude oil Maximum Sustainable Capacity from 12 million barrels of oil per day to 13 million barrels of oil per day by 2027.

Aramco achieved 99.8 percent reliability in the delivery of crude oil and other products in the second quarter of 2022.

Aramco said its Jafurah gas plant will have capacity of 3.1 billion standard cubic feet per day (bscfd) of raw gas, expected to be completed in two phases by 2027. The Jafurah field is expected to commence production in 2025 and will increase natural gas deliveries to reach a sustainable rate of 2.0 bscfd by 2030, which will provide feedstock for hydrogen and ammonia production and will help meet expected growing local energy demand.

Aramco’s Hawiyah Unayzah Gas Reservoir Storage is expected to provide up to 2.0 bscfd of natural gas to be injected into the Master Gas System by 2024. It is the first underground natural gas storage project in the Kingdom.