Saudi Aramco reports profit surge on higher oil prices
A jump in crude prices more than made up for lower production. Saudi Aramco reported a 9% rise in profit and increased dividend payments, most of which go to the Saudi state, as a jump in crude prices more than made up for lower production. Profit rose to $31.2 billion in the third quarter, driven by a 35% increase in the average selling price of its oil, even as the company tackled repeated attacks on its facilities from Yemen’s Houthis and Iranian strikes on ships passing through the Strait of Hormuz. Despite Aramco’s ability to export oil at higher prices, its stock has lagged the global majors that mostly operate outside the Gulf. Although lower than prewar levels, Aramco reported higher oil production than the previous quarter as it embraced more risky ship-to-ship transfers to get crude out through Hormuz and boosted shipments through the Red Sea. Aramco is looking to maximize production through the end of the year, “utilizing all the routes that we have,” and sees buoyant demand lasting for several years, CEO Amin Nasser said on an earnings call. It could take two years to refill depleted global oil storage reserves even if the Iran war was resolved today, Nasser said.
A jump in crude prices more than made up for lower production. Saudi Aramco reported a 9% rise in profit and increased dividend payments, most of which go to the Saudi state, as a jump in crude prices more than made up for lower production. Profit rose to $31.2 billion in the third quarter, driven by a 35% increase in the average selling price of its oil, even as the company tackled repeated attacks on its facilities from Yemen’s Houthis and Iranian strikes on ships passing through the Strait of Hormuz. Despite Aramco’s ability to export oil at higher prices, its stock has lagged the global majors that mostly operate outside the Gulf.
Although lower than prewar levels, Aramco reported higher oil production than the previous quarter as it embraced more risky ship-to-ship transfers to get crude out through Hormuz and boosted shipments through the Red Sea. Aramco is looking to maximize production through the end of the year, “utilizing all the routes that we have,” and sees buoyant demand lasting for several years, CEO Amin Nasser said on an earnings call. It could take two years to refill depleted global oil storage reserves even if the Iran war was resolved today, Nasser said.