Saudi oil giant Aramco is making almost $1 billion every two days as prices rise.

The numbers give rotation. 439 million dollars a day, almost a billion euros every two days! That’s the (giant) first-quarter net profit posted by oil giant Saudi Aramco. This is a total of $39.5 billion earned between January and the end of March 2022, up 82% from the same period in 2021 ($21.7 billion). This is a record since the IPO of the world’s largest oil exporter in 2019.

This impressive leap is due “mainly due to higher crude oil prices and sales volumes, as well as improved refining and marketing profitability (refining and distribution, approx. ed.)”, indicates the Saudi national hydrocarbon company in a press release published on Sunday, May 15.

The oil giant also announced an increase in its capital by issuing 20 billion shares, distributed free of charge to shareholders, in accordance with the ratio of one outstanding share to ten shares owned. He also revealed that $18.8 billion in dividends would be paid in the second quarter. “With increased volatility in global markets, we remain committed to meeting the global demand for reliable, affordable and increasingly sustainable energy,” said Amin Nasser, Chairman and CEO of Aramco.

However, Saudi Aramco is facing security concerns over a war waged by a Saudi-led military coalition against Yemeni Houthi rebels who have repeatedly attacked the kingdom. In March, a Houthi attack on Aramco facilities caused a decline in “temporary” from production. A situation that already took place in 2019.

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Largest market capitalization, ahead of Apple

Saudi Aramco’s results were released less than a week after the company toppled Apple as the world’s largest company by market cap. Its capitalization really reached 2.430 billion dollars on Wednesday, May 11, according to Bloomberg, against 2.371 billion from the iPhone manufacturer.

Listed on the Riyadh Stock Exchange at the end of 2019, Aramco shares closed at 45.50 SAR, down 0.98% in the session but up 27% year-to-date due to rising prices. energy companies.

Market valuation: oil company Aramco takes the crown from Apple

Saudi Aramco’s rise to the top of the world’s largest stock market-valued companies was also driven by the tech stock crash that recently affected Apple and all the digital big names. Thus, the Nasdaq index has lost more than 25% since the beginning of the year due to the change in monetary policy by the US Central Bank (Fed) in the face of inflation and the war in Ukraine.

Between its late 2019 IPO and July 2020, the oil giant already had a higher market cap than Apple.

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Saudi Arabia is expected to grow by 7.6%

In March, Armaco announced 2021 net income growth of 124% year-over-year to $110 billion, surpassing pre-pandemic levels. By comparison, TotalEnergies made a profit of $16 billion last year.

Thanks to this strong performance in this jewel of the kingdom, the main source of income, Saudi Arabia showed the highest growth rate in the last ten years, and the booming oil sector provided growth of 9.6% in the first quarter compared to the same period last year. 2021.

Saudi Arabia’s gross domestic product (GDP) is expected to grow by 7.6% in 2022, according to an estimate by the International Monetary Fund (IMF) in April. The kingdom has sought to both open up and diversify its oil-dependent economy, especially since the appointment of Mohammed bin Salman as crown prince in 2017.

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(with AFP)