Aramco earnings set new record for the company since its IPO in 2019

Saudi Arabia’s Aramco Sets the IPO Price Range Between 30 and 32 Riyals Per Share
Saudi Arabia’s Aramco Sets the IPO Price Range Between 30 and 32 Riyals Per Share

Aramco continued to deliver a stable dividend in Q1, with $18.8 billion to be paid to shareholders in the second quarter. In addition, Aramco’s Extraordinary General Assembly on May 12 approved the Board of Directors’ recommendation in Q1 to capitalize $4 billion of retained earnings to support the distribution of bonus shares to shareholders, in the amount of one share for every 10 shares held.

The Saudi Arabian Oil Company (Aramco) Sunday announced its first quarter 2022 financial results, posting an 82% year-on-year (YoY) increase in net income to $39.5 billion — and setting a new quarterly earnings record for the company since its Initial Public Offering in 2019.

Aramco also declared a Q1 dividend of $18.8 billion to be paid in the second quarter, and has approved the distribution of one bonus share for every 10 shares held in the company. The results were underpinned by higher crude oil prices and volumes sold, and improved downstream margins.

Commenting on the results, Aramco President and CEO Amin H. Nasser, said: “Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world’s demand for energy that is reliable, affordable and increasingly sustainable.

“Energy security is vital and we are investing for the long term, expanding our oil and gas production capacity to meet anticipated demand growth and creating long-term shareholder value by capitalizing on our low lifting cost, low upstream carbon intensity, and integrated downstream business.

“During the first quarter, our strategic downstream expansion progressed further in both Asia and Europe, and we continue to develop opportunities that complement our growth objectives.

“As we collaborate with domestic and international partners to explore new and emerging technologies and solutions, from developing cleaner transport technologies to establishing low-carbon hydrogen and ammonia value chains, I am more optimistic than ever about the positive contribution we can make, both to our customers and to the ongoing global energy transition.”

Aramco achieved a record quarterly net income of $39.5 billion in Q1, an 82% increase from $21.7 billion in Q1 2021, primarily driven by higher crude oil prices and volumes sold, and improved downstream margins.

First quarter capital expenditure was $7.6 billion and Aramco continues to expect capital expenditure to grow until around the middle of the decade, to support the company’s long-term strategy realization.

The company continued to progress its portfolio optimization program and closed a lease and leaseback deal involving its gas pipeline network with a consortium of investors led by BlackRock Real Assets and Hassana Investment Company. The consortium acquired a 49% stake in a newly-formed Aramco subsidiary, Aramco Gas Pipelines Company, with Aramco receiving upfront proceeds of $15.5 billion.

Aramco demonstrated reliable upstream performance with an average total hydrocarbon production of 13.0 million barrels of oil equivalent per day in the first quarter of 2022. The company maintained its exceptional track record as a global energy supplier, achieving 99.9% reliability in its deliveries to customers during the first quarter.

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