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Oil giant Saudi Aramco profits hike by 30% in Q1, beating forecasts

State-run oil giant Saudi Aramco announced on Tuesday its first quarter (Q1) financial results, posting a 30% year-on-year increase in net profit to $21.7 billion, beating analysts’ forecasts.

In a press statement the company declared a dividend of $18.8 billion to be paid in Q2.

The results were underpinned by higher oil prices and an improved economic environment in the

first three months of 2021.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said:

“The momentum provided by the global economic recovery has strengthened energy markets,

and Aramco’s operational flexibility, financial agility and the resilience of our employees have

contributed to a strong first quarter performance. For our customers we remain a supplier of

choice, and for our shareholders we continue to deliver an exceptional quarterly dividend.

He added that the company made further progress towards its strategic objectives during the quarter and that the company’s portfolio optimization program continues to identify value creation opportunities, such as the recent announcement of our landmark $12.4 billion pipeline infrastructure deal.

“We also expect Saudi Arabia’s newly-launched Shareek program to present growth opportunities, through incentives which encourage partnerships and investment,” he continued.

“Given the positive signs for energy demand in 2021, there are more reasons to be optimistic

that better days are coming. And while some headwinds still remain, we are well-positioned to

meet the world’s growing energy needs as economies start to recover.”

1Financial Highlights

According to the statement, Saudi Aramco cash flow from operating activities  was $26.5 billion in the Q1, while first quarter capital expenditure stood at $8.2 billion.

Aramco demonstrated reliable upstream performance with an average total hydrocarbon

production of 11.5 million barrels per day of oil equivalent in the first quarter of 2021, including

8.6 million barrels per day of crude oil.

The Company maintained its exceptional track record as a global energy supplier, achieving 100%

reliability in its deliveries to customers during the first quarter.

In January, Aramco partnered with stc, a leading telecom and technology services company, to

launch one of the world’s most powerful supercomputers, Dammam 7. Its high-performance

computing capability of 55.4 petaflops presents new opportunities in both exploration and

development, enhancing Aramco’s ability to predict the location of new reserves using

sophisticated imaging and artificial intelligence deep learning technologies.

Dammam 7 supports Aramco’s digital transformation program, complementing a suite of advanced technologies that are reshaping core operations, driving efficiencies and reinforcing its industry leadership.

During the first quarter, Aramco and The Dow Chemical Company, partners in the Sadara

Chemical Company (Sadara) joint venture, entered into agreements relating to their Sadara joint

venture.

This includes extending the debt repayment tenure, a grace period for interest

payments and sponsor guarantees. It further includes other agreements with respect to

procurement of feedstock and marketing rights for Sadara’s finished products.

Aramco planted more than 500,000 trees during the first quarter, successfully completing its

program to plant one million trees. The program’s main objective is to mitigate desertification,

sequester carbon, and enhance native biodiversity. The One Million Trees Initiative aligns with

the United Nations Biodiversity and Sustainability Development Goals, and is part of the

Company’s commitment to protecting the environment.