Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
Saudi Aramco joins oil results bonanza with 39% jump in net income
Published Nov 01, 2022 01:41AM ET
Updated Nov 01, 2022 05:57AM ET
© Reuters. FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
By Hadeel Al Sayegh
DUBAI (Reuters) -Saudi Arabian state oil producer Aramco (TADAWUL:2222) beat forecasts on Tuesday with a 39% jump in third-quarter net income and reported record free cash flows, joining rivals in benefiting from higher prices and robust demand.
Aramco's net income rose to $42.4 billion for the three months to Sept. 30 from $30.4 billion a year earlier, it said in a regulatory filing. That was just above the median forecast of $41.7 billion from 16 analysts.
"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, lower-carbon intensity upstream production and strategically integrated upstream and downstream businesses," Chief Executive Officer Amin Nasser said.
The company's free cash flow rose to $45 billion from $28.7 billion a year-earlier. It declared a dividend of $18.8 billion in the third quarter, meeting its own target, which will be paid in the fourth quarter.
"Given this lengthy period with elevated crude prices, which feed into solid cash flow performances as well as deleveraging of Aramco’s balance sheet, we are of the view that dividends will ultimately be increased," said Yousef Husseini, associate director for equity research at EFG Hermes.
Aramco joins oil majors Exxon Mobil Corp (NYSE:XOM), Chevron (NYSE:CVX) and BP (NYSE:BP) that have reported strong or record breaking results recently, benefiting from surging crude and natural gas prices that have boosted inflation around the world and led to fresh calls to further tax the sector.
"While global crude 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," Nasser said.
Aramco's reported net income, while higher year on year, was slightly lower than its record second quarter.
Net income was also partially offset by increased production royalties, resulting from stronger crude oil prices and higher sales volume.
Royalties and other taxes more than doubled year-on-year in the third quarter to $24.3 billion, from $10.48 billion last year.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.