Saudi Aramco reported a net profit of $48.4 billion for the second quarter of the year, a record figure and a 90-percent increase on the year thanks to stronger oil prices.
For the first half of the year, the Saudi state energy major booked a profit of $87.9 billion, it said in its report.
Free cash flow for the second quarter stood at $34.6 billion, and the figure for the first half of 2022 was $65.2 billion, Aramco also said.
“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential — both to help ensure markets remain well supplied and to facilitate an orderly energy transition,” said Aramco’s chief executive Amin Nasser.
“In fact, we expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts,” Nasser also said.
The company reported average daily production of 13.6 million barrels daily of oil equivalent in the reporting period and reiterated its plan to boost its crude oil production capacity, which it calls Maximum Sustainable Capacity, from 12 million bpd to 13 million bpd by 2027.
The issue with Saudi Arabia’s spare production capacity recently came into the spotlight amid U.S. and European efforts to convince the Saudis to boost production so prices could ease. While the actual size of that capacity has only been the object of speculation but no verification, the plan to boost the maximum capacity from 12 to 13 million bpd is quite a specific target.
This target has provided some clarity on Saudi Arabia’s ability to supply more oil, boosted by a recent statement by Crown Prince Mohammed, who said directly earlier this year that the Kingdom would not be able to increase its production capacity to more than 13 million bpd.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.