Saudi Aramco.
Hamad I Mohammed/Reuters
Saudi Aramco posted a 39% jump in third-quarter profit to $42.4 billion in is earnings report Tuesday.
The surge in crude oil prices has driven bumper earnings for energy majors across the world.
Higher oil prices driven by Russia’s war and OPEC+ cuts have helped lift the company’s profits.
Saudi Aramco posted a 39% leap in third-quarter profit Tuesday, thanks to a surge in crude oil prices that has driven bumper earnings for energy majors across the world.
The state-owned energy company, formally named Saudi Arabian Oil Co., reported net income of $42.4 billion in the quarter, up from $30.4 billion in the same period last year. It also posted a record free cash flow of $45 billion, an increase from $28.7 billion the year prior.
The gains came as prices for crude oil rise amid a tightening in global supply. The OPEC+ group of oil producers — where Saudi Arabia is the de facto leader — slashed production by 2 million barrels a day in early October in a bid to elevate prices.
“While global crude oil prices during this period were affected by continued economic uncertainty, our longterm view is that oil demand will continue to grow for the rest of the decade given the world’s need for more affordable and reliable energy,” Saudi Aramco’s president and CEO, Amin Nasser, said in a statement.
Oil prices have risen nearly 20% this year on the fallout from Russia’s war on Ukraine, which triggered Western sanctions against Moscow and curbed supply.
But they have declined from their March highs above $120 a barrel on fears that a recession will weigh on demand, in particular as a result of China’s faltering economy. The world’s second-biggest economy has returned to imposing COVID-19 curbs including lockdowns, which hit businesses and so have dampened hopes for demand.
Brent crude, the international benchmark, was trading at $93.87 a barrel at last check Tuesday, while WTI crude was at $87.38 a barrel.