Connect with us

Hi, what are you looking for?

World

Top Saudi oil firm sees 90% surge in net profits for second quarter of 2022

Aramco, the Saudi oil giant, has reported profits of $48.4bn for the second quarter 2022 (PS40bn), a 90% increase year-over-year.

This sum broke the firm’s quarterly profit record of May. The reason for this was the soaring energy prices caused by Vladimir Putin’s invasion in Ukraine, which resulted in huge windfalls for oil producers.

This figure of $48.4bn is more than the profits of all six months last year (PS39bn), which reached $47bn.

It also marks the company’s highest quarterly earnings ever since it was listed publicly in 2019. In 2019, the Saudigovernment which holds 98% of the firm, also sold a 1.7% share primarily to the Saudi public institutions and regional institutions.

Advertisement

Aramco’s half year profits reached $87.9bn, or PS72.4m, as global oil prices remain high. This puts Aramco on track for far exceeding the full-year earnings in 2019, which was $88bn before the pandemic.

According to the company, profits resulted primarily from higher crude oil prices and volumes and higher refining margins.

The invasion of Ukraine by President Putin has led to the west pledging to reduce their dependence on Russian oil.

Learn more about the Energy Crisis

However, oil prices rose before the war because countries had recovered from the pandemic, and the supply was not able to keep up with the demand.

In May, Aramco surpassed Apple to become the most valuable company.

Global energy companies like BP and Shell have seen their earnings rise to the highest level in over a decade, despite the fact that many of them lost assets due to Russia’s exit.

There have been increasing calls for a UK windfall tax on oil companies to help families cope with the rising cost of living crisis.

Since over a year, the Labour Party has called for a windfall tax to be applied to oil companies’ profits. Shadow climate change secretary Ed Miliband had previously stated that it was “an unanswerable situation”.

According to the party, funds from this tax could be used for extra support of UK households amid the current cost of living crisis.

The Saudi economy has seen a significant boost from the rising oil prices. It reported its fastest economic growth rate in 10 years during the first quarter.

However, Liz Truss, Conservative leader candidate, defended earnings at energy firms amid rising prices, saying profits shouldn’t be considered “dirty or evil”.

She called the idea of a windfall income tax “bashing business”.

A windfall tax is an additional charge that companies who have been able to benefit from circumstances not their fault are subject to.

Comments

Latest Tweets

London Globe

Convicted paedophile Rolf Harris “gravely sick” with neck cancer, it is reported. zpr.io/A22hEK7LucKa zpr.io/A22hEK7LucKa #news #londonglobe #unitedkingdom

Advertisement

You May Also Like

Business

The controversial Russian businessman Viktor Baturin, well-known for his years-long counterstanding with his wealthy sister Elena, widow of Moscow ex-mayor Yuri Luzhkov, is likely...

United Kingdom

Film director Ridley Scott has recalled the death of actor Oliver Reed while making the Oscar winning blockbuster Gladiator. Scott said hard-drinking Reed “just...

European Union

On April 9, 2022 Dimash Qudaibergen’s first solo concert in Germany took place in Düsseldorf. The colossal energy and the atmosphere of unity did...

United Kingdom

The Watneys Party Seven is making a comeback. The ubiquitous 70s beer was a bland fizzing bitter ridiculed by many. The drink’s insipidness helped...