Saudi Aramco announced today that its net profit in Q1was better than expectations. It recorded an 82 percent year-on-year increase in net income, which rose to 148 billion riyals ($39.5 billion).
The company has posted record quarterly profits since its initial public offering (IPO) in 2019.
Al-Rajhi Financial Company had expected that Aramco would achieve profits of 136.6 billion riyals during Q1 2022, an increase of 74 percent compared to the same period in 2021.
Aramco announced, in a statement, a dividend of 70.3 billion Saudi riyals ($18.8 billion), for Q1 2022, to be paid in Q2.
It also approved the distribution of one bonus share for every ten shares owned in the company. These results are supported by the increase in crude oil prices and sales volumes, and the improvement in the profit margins of the refining, processing, and marketing business.
This week, Aramco toppled the American technology giant, “Apple”, to become the most valuable company in the world in terms of market value, after the rise in oil prices led to an increase in the value of the oil company’s shares, while technology shares fell.
Commenting on these results, Aramco President and Chief Executive Officer, Amin Nasser, said: “After the past year witnessed very distinguished results on the financial and operational levels, the company continued its progress, achievements and interaction with the markets, so the results of the first quarter of this year were at an exceptional level. , making it the strongest quarterly profit since the company’s initial public offering in 2019. In fact, it is one of the strongest quarterly profits in the world.
He added, “Energy security is vital as we invest in the long term and enhance our ability to produce oil and gas to meet expected demand.”
“We remain focused on helping meet global demand for reliable, affordable, and sustainable energy,” Nasser said.
Last Thursday, the Extraordinary General Assembly of Aramco approved the board of directors’ recommendation to increase the company’s capital from 60 billion riyals to 75 billion riyals, by capitalizing 15 billion riyals of retained earnings.
According to Aramco, shareholders will be given one share for every 10 shares owned in the company.
The company’s capital before the increase amounted to 60 billion riyals, and after the increase, it will become 75 billion riyals, an increase of 25%.
The number of the company’s shares before the increase amounted to 200 billion shares, and after the increase, it will become 220 billion shares.
