Saudi Aramco’s net income soared by 82% year-on-year (YoY) in the first quarter of the year, as the group took advantage of the volatility in global energy markets and surging oil prices after Russia invaded Ukraine.
In the first three months of this year, the company reported a record net income of $39.5 billion, up from $21.7 billion a year ago.
The chief executive of Aramco explained that the soaring profits are due to rising oil prices as well as an increase in production in the kingdom and allied countries in OPEC+. Additionally, he made the suggestion that the disruption caused by the war in Ukraine had underlined the importance of oil and gas companies like Aramco.
Aramco reported that cash flow from operating activities was $38.2 billion in the first quarter, compared to $26.5 billion in Q1 2021. The free cash flow increased by 68% YoY to $30.6 billion.
The Extraordinary General Assembly of Aramco approved on May 12 the Board of Directors’ recommendation in Q1 to capitalize $4 billion of retained earnings in order to distribute bonus shares to shareholders in the amount of one share for every ten shares owned.
During the first quarter of 2022, Aramco achieved reliable upstream performance with an average total hydrocarbon production of 13 million barrels of oil equivalent per day.
