Brent crude has risen to around $70 per barrel after OPEC+ agreed to cut oil production
Aramco, the Saudi Arabian energy giant, saw its profits surge by nearly 300% thanks to an increase in the price of oil as demand recovers across the world.
The company, which is one of the biggest in the world, confirmed that vaccinations, the easing of restrictions, stimulus packages and the resurgence of economic activity have all played a part in its results.
Since the beginning of 2021, crude oil prices have risen by more than 30%, as Aramco’s net income rose by 288% to $25.5bn (£18.4bn) for Q2.
It surpassed analysts’ expectations of a net income of around $24.7bn for the quarter.
Brent crude has risen to around $70 per barrel after OPEC+ agreed to cut oil production.
The company’s chief executive also provided a positive outlook for the remainder of 2021.
“Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum,” Amin Nasser said in a statement.
Saudi Aramco’s chief executive added that while the dividend could rise in the future, the company had identified an opportunity to increase its maximum output capacity.
Oil producers in the western world anticipate having to cut their production over the coming years, as pressure piles on from governments and investors to change to more renewable forms of energy.
“Seeing that there is a lot of under-investment in [oil] supply it’s a great opportunity for us. We are diligently working to increase capacity,” Nasser said.
Saudi Aramco’s largest shareholder is the Saudi Arabian government with 98% of its shares. It is the kingdom’s primary source of revenue.