Aramco Posts 90% Increase in YoY Q2 Net Income of $48.4 Billion

/ Financial News / Monday, 15 August 2022 11:24

Saudi Aramco posted a 90% year-on-year (YoY) increase in net income in the second quarter of 2022. It has declared a dividend of $18.8 billion to be paid in the third quarter.

The results set a new quarterly earnings record for the company since its initial public offering in 2019, primarily attributable to higher crude oil prices and volume sold as well as higher refining margins.

Aramco achieved a record quarterly and half-year net income of $48.4 billion in the second quarter and $87.9 billion in the first half of 2022, compared to $25.5 billion and $47.2 billion, respectively, for the same periods in 2021.

Source: Saudi Aramco

Free cash flow increased by 53% to $34.6 billion in the second quarter and was $65.2 billion during the first half of 2022, compared to $22.6 billion and $40.9 billion, respectively, for the same periods in 2021. This increase was mainly driven by higher cash from operating activities.

Return on average capital employed (ROACE) for the second quarter and half year ended June 30, 2022, was 31.3%, compared to 16.7% for the same periods in 2021.

Capital expenditure increased by 25% to $9.4 billion in the second quarter and by 8% to $16.9 billion for the first half of 2022, compared to the same periods in 2021. Aramco will continue investment to capture growth opportunities, progressing the strategic integration of its upstream and downstream segments, expanding its chemicals business and developing prospects in low-carbon businesses.

Commenting on the results, Aramco President and 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. While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential — both to help ensure markets remain well supplied and to facilitate an orderly energy transition.”

Related: Aramco Launches New Data Venture With Global Industrial Software Firm

Related: Saudi Aramco signs MoU with Nokia to support digital transformation

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