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Saudi Aramco, the world’s biggest oil company, which is 95% owned by the Saudi Arabian government, announced a 90% year-on-year increase in net income for Q2.
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The business achieved a record quarterly and half-year net income of $48.4 billion in the second quarter and $87.9 billion in the first half of 2022, compared to $25.5 billion and $47.2 billion, respectively, for the same periods in 2021.
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The increase in both periods was primarily driven by higher crude oil prices and volumes sold and ongoing geopolitical issues in Europe which have led to many nations searching for alternative energy sources.
Why it matters
The blowout results are a major windfall for the Saudi Arabian government, which relies heavily on its Aramco dividend to fund government expenditure. Aramco said it expects the post-pandemic recovery in oil demand to continue for the rest of the decade, despite what it called “downward economic pressures on short-term global forecasts.”
