• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 1 day Once seen as fleeting, a new solar tech proves its lasting power
  • 5 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

Oil Should Stay In Triple Digits: Analyst

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Aramco Posts Near 300% Increase In Profits On Surging Demand

Saudi Aramco reported a 288-percent increase in net profits for the second quarter of the year, to $25.5 billion, thanks to the rebound in oil prices spurred by growing demand.

The company also reported net profit of $47.2 billion for the first half of the year, a 103-percent increase on the year.

Free cash flow rose to $22.6 billion in the second quarter from $6.1 billion a year earlier. For the first half, free cash flow swelled to $40.9 billion from $21.1 billion a year earlier.

Thanks to this strong performance, the Saudi major declared a dividend of $18.8 billion for the second quarter that this time it might finance without resorting to loans.

"Our historic $12.4 billion pipeline deal was an endorsement of our long-term business strategy by international investors, representing significant progress in our portfolio optimization program," said chief executive Amin Nasser.

"Our landmark $6 billion Sukuk reinforced our robust balance sheet, further diversifying our funding sources and expanding our investor base. And, once again, we delivered a dividend of $18.8 billion for our shareholders."

Aramco sold a majority stake in its pipeline business to a consortium led by EIG Global Energy Partners for $12.4 billion earlier this year. Aramco Oil Pipelines Co. is a new business entity, formed to keep—or trade—the rights to 25 years of payments of rates for crude transportation across Aramco's pipeline network. According to EIG, the entity has an equity value of some $25 billion.

The company also debuted on international Islamic finance debt markets with a $6-billion issue in June to help fund its dividend, which stands at $75 billion on an annual basis. The debt comprised three tranches, with maturities of three, five, and ten years, respectively.

Meanwhile, as net profits rose, so did capital expenditure. Aramco spent $7.5 billion in the second quarter and $15.7 billion in the first half. The numbers represented an annual increase of 20 percent and 15 percent, respectively.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News