I've been told by people on this board that oil companies are just barely scraping by as the cost of extracting oil has gone up so much. Then I saw the latest financial report from Saudi Aramco.
Saudi Aramco posted the biggest quarterly adjusted profit of any listed company globally driven by high crude prices and production.
Aramco followed big oil rivals reporting a surge in profits. Net income rose to $48.4 billion in the second quarter, up from $25.5 billion a year earlier, the state-controlled company said on Sunday. Its free cash flow rose by 53% from a year earlier to $34.6 billion.
Energy companies boomed in the first half of this year. Russia’s invasion of Ukraine roiled markets, sending oil prices above $100 a barrel and causing refining margins to soar, while Aramco is benefiting from both high production and sales prices. Firms such as Exxon Mobil Corp. and Shell Plc made record earnings in the second quarter.
Aramco also reduced gearing, a measure of debt to equity, to 7.9% from 14.2% at the end of 2021. Revenue climbed 80% to $150 billion and free cash flow, which had dropped below the level needed to fund its dividend payments in 2020, rose 53% from a year earlier to $34.6 billion. Profit beat a company compiled analyst estimate of $46.2 billion.