Saudi Aramco unveils record $48.4 billion profit in second quarter of 2022

Oil giant Saudi Aramco on Sunday unveiled record profits of $48.4 billion in the second quarter of 2022, after the Ukraine crisis and a post-pandemic surge in demand sent crude prices soaring.

Net income leapt 90 per cent year-on-year for the world's biggest oil producer, which clocked its second straight quarterly record after announcing $39.5 billion for Q1.

"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 president and CEO Amin H 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."

Net income rose 22.7 per cent from Q1 in "strong market conditions", Aramco said. Half-year profits were $87.9 billion, up from $47.2 billion for the same period of 2021.

Aramco paid an $18.8 billion dividend in Q2 and will disburse the same amount in Q3.

The quarterly profits, the highest since Aramco's flotation in late 2019, beat analyst forecasts of $46.2 billion.

Aramco was priced at 40.8 riyals ($10.9) ahead of the Saudi stock exchange's opening on Sunday.

Aramco floated 1.7 per cent of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world's biggest initial public offering.

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Earlier this month, the International Energy Agency said global oil demand would rise more than previously forecast this year as heatwaves and soaring gas prices prompt countries to switch fuels for power generation.

Oil prices have dropped by $30 per barrel from a peak in June due to growing supplies, but remain close to $100.

• Saudi Arabia