Aramco Reports Strong Q2 Earnings Despite Global Supply Disruptions
RIYADH — Saudi Aramco reported second-quarter adjusted net income of $33.4 billion, up 33 percent year on year, as the state oil giant weathered unprecedented disruption through the Strait of Hormuz while maintaining production and exports.
The company declared a base dividend of $21.9 billion, payable in the third quarter, even as free cash flow fell to $12.3 billion from $18.6 billion in the prior quarter. Gearing rose to 6.2 percent from 4.8 percent at the end of March.
The scale of the disruption is reflected in official data showing crude and petroleum liquids transiting the Strait of Hormuz fell nearly 30 percent to 14.6 million barrels a day from 20.4 million a year earlier. Aramco kept operating through the turmoil by capitalizing on its East-West Pipeline, storage capacity, and export terminals.
Revenue climbed to $139.1 billion in the second quarter, up from $108.6 billion a year earlier, driven by higher crude oil prices that more than offset lower volumes. The average realized crude oil price jumped to $108.10 a barrel, up sharply from $76.90 in the first quarter.
Over the six-month period, adjusted net income rose 29 percent year on year to $67.2 billion. Upstream adjusted EBIT slipped to $50.9 billion from $54.2 billion in the previous quarter, while downstream posted adjusted EBIT of $6.2 billion, up 25 percent quarter on quarter on stronger refining margins.
Aramco pressed ahead with strategic projects, including construction on the Zuluf crude oil increment and the Fadhili Gas Plant expansion, targeted for completion in 2026 and 2027. The company also completed a $4 billion international bond issuance and continued its share repurchase program.
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