Half-year earnings for Saudi oil giant Aramco rise to $47B

Saudi Arabia's oil-producing firm, Aramco, reported Sunday that it had a net income of approximately $47 billion for its first half of the year. This is double the amount it earned during the same period last years, when the coronavirus crippled travel and lowered global oil demand.

Half-year earnings for Saudi oil giant Aramco rise to $47B

This puts Aramco right back where it was before the pandemic and brings its earnings down to $23.3 billion for the first six months 2020.

Amin Nasser, CEO of Aramco, stated that the company's results for its second quarter "reflect a strong rebound" in global energy demand.

He stated that while there are still uncertainties around the COVID-19 challenges, "we have demonstrated that we can adapt quickly and effectively to changing market circumstances."

In its earnings report, the company confirmed that it was driven by higher crude oil prices in the second quarter 2021. This is up from $45 per barrel last year.

The state-owned majority of the oil company reported net income for the second quarter at $25.46 billion, compared to the shocking figure of $6.6 billion last fiscal year. The quarter's net income is slightly more than the $24.7 million it earned in its second quarter of 2019, prior to the coronavirus.

The second quarter earnings also show an improvement over the first quarter, which brought in $21.7 billion.

Saudi Arabia is leading global efforts of major oil producers to reduce output to prevent prices from plummeting as uncertainty about coronavirus impacts consumer demand. The agreement stipulates that the kingdom will produce between 8-9 million barrels of crude oil per day starting May 2020.

Saudi Arabia's stability depends on Aramco's financial health. The kingdom is still heavily dependent on oil exports for its government spending, despite massive efforts by Mohammed bin Salman, Saudi Crown Prince Mohammed Bin Salman.

According to the company's promise to pay 75 billion annually in dividends, it will continue to pay $18.75 million in dividends for the second quarter. The majority of this payout goes to the Saudi government, which is the primary shareholder.

It signed a $12.4billion pipeline deal with a consortium headed by a U.S-based group and a $6billion Shariah-compliant bond issue to boost its operating cash flow and cash proceeds.