Saudi Aramco reported a 90% YoY jump in its Q2 net income to $48.4bn on the back of higher crude oil prices and volumes, strong refining margins, and higher downstream margins. Revenue saw an 80% YoY growth to $149.8bn. Aramco’s free cash flows rose by 53% YoY to $34.6bn mainly driven by higher cash from operating activities. The gearing ratio fell to 7.9% vs. 14.2% on December 31, 2021 due to higher operating cash flows and improved margins. Also, capital expenditure was higher by 25% YoY to $9.4bn. The company made a partial prepayment to the Public Investment Fund (PIF) regarding debt related to the acquisition of a 70% stake in SABIC in 2020 which had led to a reduction in the principal amounts of its promissory notes by $12bn. The oil major said that it will continue to focus on oil and gas expansion and the development of lower-carbon energy solutions. Aramco President & CEO Amin H. Nasser said, that they were confident of ramping up production to “12mn bpd any time there is a need or a call from the government or from the ministry of energy to increase our production, expects oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts”. Aramco declared a dividend of $18.8bn for Q2 which is to be paid in Q3. It also distributed bonus shares at a ratio of 1 share for every 10 shares held during Q2.

Aramco’s dollar bonds were lower with its 0.946% 2024s down 0.12 points to 94.98, yielding 3.81%.

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