Saudi Aramco posted a 39% jump in third-quarter profits year on year on the back of higher oil prices resulting largely from Russia's invasion of Ukraine.
The announcement follows the OPEC+ group decision to cut production, a move that did not go over well with the United States, which sees it as supportive of Russia’s agenda.
Aramco’s net income totaled $42.4 billion – up from $30.4 billion during the same period last year – and was "primarily driven by higher crude oil prices and volumes sold," it said in a filing with the Saudi stock exchange.
CEO Amin Nasser touted the firm's "strong earnings and record free cash flow" of $45 billion, up from $28.7 billion at this time last year. Also read: Aramco Posts 90% Increase in YoY Q2 Net Income of $48.4 Billion
"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," he said in a statement.
Aramco's latest financial results were published just days before the COP27 climate summit, which is aimed at curbing global warming.
Last year, ahead of the COP26 climate-change summit, Saudi Arabia pledged to achieve net zero carbon emissions by 2060, sparking skepticism from environmental campaigners.
Saudi Aramco, for its part, has pledged to achieve "operational net-zero" carbon emissions by 2050.
That applies to emissions that are produced directly by Aramco's industrial sites, but not the CO2 produced when clients burn Saudi oil in their cars, power plants and furnaces.
Saudi officials have lately stressed the need for more investment in the sector, arguing that focusing on climate change at the expense of energy security would further fuel inflation and other economic woes.
The strong performance has led to a banner economic year for Saudi Arabia, driving a surplus that could help finance the ambitious plans of Crown Prince Mohammed bin Salman to open up the Kingdom and diversify its oil-reliant economy.
On Monday, Saudi Arabia reported a preliminary estimate of 8.6% economic growth in the third quarter of 2022 compared to the same period last year, "mainly due to the increase in oil activities."
The International Monetary Fund has said Saudi Arabia's GDP is expected to expand by 7.6% this year.
Yet, a slowdown in China — as well as recession fears in Europe and the United States — could make it difficult for Aramco to maintain its current momentum, even after accounting for both the OPEC+ cuts that would slash supply by two million barrels per day and a European ban on Russian crude imports that is due to take effect in December.
In the long term, Saudi Arabia plans to increase daily oil production capacity by more than one million barrels to exceed 13 million by 2027.
Aramco floated 1.7% of its shares on the Saudi bourse in December 2019, generating $29.4 billion in what remains the world's biggest initial public offering.
Also read: Aramco Unveils One of World’s Largest Sustainability Funds
