Saudi Aramco announced its preliminary financial results for the second quarter of this year on Sunday, achieving a net profit growth of 287.8%. The company stated in a statement to Tadawul that the net profit reached 95.47 billion Riyals, compared to 24.62 billion Riyals in the same period last year. Revenues increased by 153.5%, reaching 312.35 billion Riyals, versus 123.23 billion Riyals in the same period last year.
This strong performance was primarily driven by higher crude oil prices, improved profit margins from refining and chemicals, and the consolidation of SABIC's results, partially offset by a decrease in crude oil sales volume and increased production revenue from crude oil, according to the company.
In the first half of the year, the company achieved a net profit of 176.91 billion Riyals, compared to 87.1 billion Riyals in the same period last year, representing a growth rate of 103.111%. Revenues grew by 67.55% during the first six months of the year, reaching 584.43 billion Riyals. This increase was mainly attributed to rising crude oil prices and strong earnings from refining, processing, and marketing sectors, including inventory movement gains and the consolidation of SABIC's results, partially offset by a decrease in crude oil sales volume and higher production revenue.
**Dividend Distribution**
The company announced a cash dividend distribution to shareholders of 70.33 billion Riyals (18.76 billion US dollars) for the second quarter of 2021. It stated that the dividend per share is 0.3518 Riyals. The eligibility date is August 15, with eligibility for shareholders owning shares on the entitlement date who are registered in the company’s shareholder register at the depository center at the end of the second trading day following the entitlement date.
**Q2 Expectations**
Aramco President Amin Nasser stated that the second quarter reflects outstanding results for Aramco, supported by strong recovery in global energy demand, allowing Aramco to enter the second half of the year with greater resilience and adaptability amid a wave of global economic recovery. While some uncertainties remain regarding the challenges posed by COVID-19 variants, the company has demonstrated its evolving ability to quickly and effectively adapt to changing market conditions, according to Nasser.
He pointed out that the historic infrastructure pipeline deal worth 46.5 billion Riyals (12.4 billion US dollars) represented support for the company's long-term business strategy through the confidence of international investors, marking significant progress in the enhancement of its business portfolio. The unique sukuk issuance of 22.5 billion Riyals (6 billion US dollars) also strengthened its financial position. Additionally, it increased diversification of financing sources and expanded its investor base.
He added, "We will continue to make progress on several strategic programs that focus heavily on sustainability, low-carbon fuel types, maximizing the value of our assets through optimal investment in their potential, and enhancing the integration and expansion of our refining and chemicals businesses both nationally and globally. All these reasons and more make us optimistic about the second half of 2021 and future prospects beyond."
