Aramco's net income sees multifold increase as oil prices climb

The Saudi Arabian Oil Company, Aramco, listed a net income of $30.4 billion in the third quarter of 2021, compared to $11.8 billion in the third quarter of 2020.

This increase marks a 158 per cent year-on-year increase, offering a dividend amount of $18.8 billion to be paid in the fourth quarter.

In light of this release, Saudi Aramco shares rose over one per cent at 38.2 Riyals in early trade.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said: “Our exceptional third-quarter performance was a result of increased economic activity in key markets and a rebound in energy demand..."

Free cash flow was $28.7 billion in the third quarter, compared to $12.4 billion for the same period in 2020. The company declared a dividend amount of $18.8 billion for Q3.

#Aramco’s 2021 third quarter financial results reflect the Company’s exceptional performance financially and operationally #AramcoResults

— aramco (@aramco) October 31, 2021

Aramco's future investments expect to reach $7.6 billion in the third quarter as capital expenditure, representing a 19 per cent increase, compared with the same period in 2020. This increase was primarily due to ongoing crude oil increment and other development projects.

Importantly, Aramco said it expects capital expenditure in 2021 to amount to approximate $35 billion.

Brent oil futures are trading around $84.4 a barrel, up about 63 per cent so far this year, while benchmark U.S. crude is at roughly $83.57 a barrel, up just over 70 per cent over the same period.

Aramco's capital expenditure rose 19 per cent from a year earlier to $7.6 billion in the quarter.

Higher oil prices and volumes have boosted Aramco's share price by nearly 8 per cent this year, valuing the oil giant at $2 trillion.