Aramco Q3 net profit surges 39% to $42.4bn

Aramco, Saudi oil giant and one of the world’s leading integrated energy and chemicals company, has reported third quarter (Q3) net income of $42.4 billion compared to $30.4 billion in Q3 2021, a 39% YoY increase.

The energy major’s free cash flow increased to a record $45 billion, Aramco said.

The company’s Q3 earnings reflect Aramco’s ability to generate significant value, it said.

Other highlights of the financial results:
• Cash flow from operating activities: $54.0 billion (Q3 2021: $36.3 billion);
• Free cash flow: $45 billion (Q3 2021: $28.7 billion);
• Gearing ratio: -4.1% as at September 30, 2022, compared to 12% at end of 2021;
• Q2 dividend of $18.8 billion paid in the third quarter; Q3 dividend of $18.8 billion to be paid in the fourth quarter;
• Partnership with F2 and F3 highlights work on advanced low-carbon transport solutions;
• World’s first independent certifications of blue ammonia and hydrogen production

Aramco President & CEO Amin H Nasser, said: “Aramco’s strong earnings and record free cash flow in the third quarter reinforce our proven ability to generate significant value through our low cost, low-carbon intensity Upstream production and strategically integrated Upstream and Downstream business. While global crude oil prices during this period were affected by continued economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade given the world’s need for more affordable and reliable energy.

“Against the backdrop of global underinvestment in our sector, we are extending our long-term oil and gas production capabilities while also working towards our previously stated ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from our wholly-owned operated assets.

“Our plans for our downstream expansion continue to move forward as we seek to leverage the significant potential of our products to meet rising global demand for petrochemicals, which will be critical to the materials transition that is required to support a lower-carbon future. In addition, we continue to develop new, lower-carbon energy solutions as we work to be part of a more practical, stable and inclusive energy transition,” Nasser said.