Aramco’s Q3 Profit Climbs to $28 Billion as Oil Output Rise

Saudi Aramco booked a net profit of $28 billion for the third quarter of the year, thanks to its oil production boost as OPEC+ unwound its voluntary output cuts.

The company also reported free cash flow of $23.6 billion and cash flow from operating activities of $36.1 billion. Base dividend was set at a total of $21.1 billion, plus $200 million in performance-linked payouts.

The results are a significant improvement from the second quarter, when lower prices dragged Aramco’s profit down by 19% on the year, to $22.85 billion. It bears noting that the second-quarter result was attributed to lower international oil prices, with Aramco’s average realized price at 466.70 per barrel in the period.

Over the third quarter, the average realized price stood at $70.10 per barrel, Aramco said, which contributed to the higher net result. On an annual basis, the average realized price declined from $79.30 per barrel.

“Aramco’s ability to adapt to new market realities has once again been demonstrated by our strong third quarter performance,” chief executive Amin Nasser said. “We increased production with minimal incremental cost, and reliably supplied the oil, gas and associated products our customers depend on, driving strong financial performance and quarterly earnings growth.”

The Saudi major also boasted progress in its gas plans, expecting production capacity growth of 80% by 2030 from 2021 levels. This is an upward revision from 60% capacity growth planned earlier. The focus of Aramco’s gas ambitions is the Jafurah field. It is the biggest unconventional non-oil associated gas field in Saudi Arabia and could well be the largest shale gas operation outside of the U.S., with reserves of 229 trillion cubic feet of gas and 75 billion barrels of condensates.

Earlier this month, Aramco sealed an $11-billion deal with Global Infrastructure Partners that will see the latter lease gas processing facilities at the Jafurah field back to Aramco for a period of 20 years.

By Irina Slav

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