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תוצאות התרגום
Calcalist analysis
Saudi Arabia has shrunk the oil sector, but Aramco's profits rose 288%
The kingdom's policy to diversify the economy by 7% reduced the share of oil in GDP, but this did not stop the most important asset in the Saudi economy from riding on the rise in global demand. The big question is what will be the impact of the Delta strain
Doron Peskin
08:15, 10.08.21
Tags:
oil
Saudi Arabia
Aramco
Saudi Arabia's national oil company joined the global oil giants yesterday, announcing a second-quarter earnings recovery, thanks to rising oil prices and rising demand. At the same time, there are fears that the celebrations will be short-lived, given the spread of the Delta strain, which is expected to curb the momentum of demand that has characterized the world since the beginning of the year.
Read more in Calcalist:
Smells the business with the Emirates: The consulting firm Moles is opening a representative office in Israel
Despite the taboo: Saudi Arabia is considering imposing an income tax on its citizens
Suleimani's assassination and revenge attack degraded Aramco
Aramco's net profit for the quarter ended June 30 jumped 287.8% to $ 25.46 billion. This is the highest net profit that Aramco has presented since its shares began trading on the Saudi stock exchange about two years ago. Net income in the first half, about $ 47 billion, is close to its total profit in 2020.
In its announcement to the Saudi Tadol Stock Exchange, Aramco announced the distribution of cash dividends to shareholders, amounting to $ 18.7 billion.
The oil info skyrocketed
Aramco, Saudi Arabia's most important asset and the world's largest oil company, shattered analysts' early forecasts of a net profit of about $ 24 billion in the second quarter. The reports also show that the company's revenues in the quarter climbed by 153.5% to about $ 83 billion compared to about $ 33 billion in the corresponding period last year. The increase in cash flow led to a decrease in the debt ratio, to 19.4% compared to about 23% at the end of 2020. The company attributed the results to oil prices (which have soared by about 40% since the beginning of the year), to improved refining and chemical profits and to the positive business results of the petrochemical giant Sabach, 70% of which is owned by Aramco.
Despite the impressive results indicating a rapid recovery from the Corona crisis, the picture regarding the entire Saudi economy, the largest in the Arab world, is more complex. GDP climbed 1.5% in the second quarter, the first positive growth rate in the Saudi economy since the outbreak of the corona plague. At an impressive rate of 10.1%. If this trend continues over time, it may be a sign that Saudi Crown Prince Muhammad bin Salman's efforts to diversify its sources of income are beginning to bear fruit.
The positive growth of the non-oil sectors is in line with estimates recently released by the International Monetary Fund that they will end the current year with an expansion of 4.3%. The trend is expected to continue in 2022 as well. The IMF noted that the engine for this will be achieved mainly through the private sector, which is expected to expand by 5.8% this year, with the help of important reforms and the government's quick response to the corona crisis.
Aramco CEO Amin Nasser referred to "unclear challenges due to the spread of the virus", but expressed hope that demand will reach about 99 million barrels per day by the end of the year and 100 million next year. In light of this, Nasser stressed that Aramco will work to increase Its output capacity is 13 million barrels per day from 12 million today, with some of the profits going in that direction.
Aramco facility in eastern Saudi Arabia
Aramco facility, in eastern Saudi Arabia. Prepared to increase productivity (Photo: AP)
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In conjunction with the profit line
The positive results also improve the chances of completing the huge deal that Aramco is considering acquiring a stake in the Indian corporations Reliance. According to Nasser, the deal is delayed due to the corona crisis, but is still on the table. Aramco intends to acquire 20% of Reliance's chemical company for a total value of about $ 15 billion, subject to a feasibility study currently underway.
A comparison of Aramco's results to the other giants in the sector gives them further validity. According to the first half, the aggregate net profit of the five largest energy companies in the world - Chevron, ExxonMobil, Royal Dutch, British Petroleum and Total - amounted to about $ 16.7 billion, or less than Aramco's. For example, ExxonMobil reported net income of $ 4.69 billion, or $ 1.10 per share, in the second quarter compared to a loss of $ 1.08 billion, or 26 cents per share, a year earlier. Royal Dutch also reported its highest quarterly profit in more than two years - $ 5.53 billion compared to $ 638 million a year earlier.
www.calcalist.co.il
תוצאות התרגום
Calcalist analysis
Saudi Arabia has shrunk the oil sector, but Aramco's profits rose 288%
The kingdom's policy to diversify the economy by 7% reduced the share of oil in GDP, but this did not stop the most important asset in the Saudi economy from riding on the rise in global demand. The big question is what will be the impact of the Delta strain
Doron Peskin
08:15, 10.08.21
Tags:
oil
Saudi Arabia
Aramco
Saudi Arabia's national oil company joined the global oil giants yesterday, announcing a second-quarter earnings recovery, thanks to rising oil prices and rising demand. At the same time, there are fears that the celebrations will be short-lived, given the spread of the Delta strain, which is expected to curb the momentum of demand that has characterized the world since the beginning of the year.
Read more in Calcalist:
Smells the business with the Emirates: The consulting firm Moles is opening a representative office in Israel
Despite the taboo: Saudi Arabia is considering imposing an income tax on its citizens
Suleimani's assassination and revenge attack degraded Aramco
Aramco's net profit for the quarter ended June 30 jumped 287.8% to $ 25.46 billion. This is the highest net profit that Aramco has presented since its shares began trading on the Saudi stock exchange about two years ago. Net income in the first half, about $ 47 billion, is close to its total profit in 2020.
In its announcement to the Saudi Tadol Stock Exchange, Aramco announced the distribution of cash dividends to shareholders, amounting to $ 18.7 billion.
The oil info skyrocketed
Aramco, Saudi Arabia's most important asset and the world's largest oil company, shattered analysts' early forecasts of a net profit of about $ 24 billion in the second quarter. The reports also show that the company's revenues in the quarter climbed by 153.5% to about $ 83 billion compared to about $ 33 billion in the corresponding period last year. The increase in cash flow led to a decrease in the debt ratio, to 19.4% compared to about 23% at the end of 2020. The company attributed the results to oil prices (which have soared by about 40% since the beginning of the year), to improved refining and chemical profits and to the positive business results of the petrochemical giant Sabach, 70% of which is owned by Aramco.
Despite the impressive results indicating a rapid recovery from the Corona crisis, the picture regarding the entire Saudi economy, the largest in the Arab world, is more complex. GDP climbed 1.5% in the second quarter, the first positive growth rate in the Saudi economy since the outbreak of the corona plague. At an impressive rate of 10.1%. If this trend continues over time, it may be a sign that Saudi Crown Prince Muhammad bin Salman's efforts to diversify its sources of income are beginning to bear fruit.
The positive growth of the non-oil sectors is in line with estimates recently released by the International Monetary Fund that they will end the current year with an expansion of 4.3%. The trend is expected to continue in 2022 as well. The IMF noted that the engine for this will be achieved mainly through the private sector, which is expected to expand by 5.8% this year, with the help of important reforms and the government's quick response to the corona crisis.
Aramco CEO Amin Nasser referred to "unclear challenges due to the spread of the virus", but expressed hope that demand will reach about 99 million barrels per day by the end of the year and 100 million next year. In light of this, Nasser stressed that Aramco will work to increase Its output capacity is 13 million barrels per day from 12 million today, with some of the profits going in that direction.
Aramco facility in eastern Saudi Arabia
Aramco facility, in eastern Saudi Arabia. Prepared to increase productivity (Photo: AP)
Unexpected and surprising at every moment, "Do Not Breathe 2" is a thriller worth…
Not Breathing 2, 12.8 In Cinema | YouTube
Ryan Reynolds returns in a huge action comedy, "Release Ga…
Release Guy, 11.8 In Cinema | YouTube
Gulf attack: Iran is not afraid of escalation and has Jethro…
Calcalist
by TaboolaPromoted Links
In conjunction with the profit line
The positive results also improve the chances of completing the huge deal that Aramco is considering acquiring a stake in the Indian corporations Reliance. According to Nasser, the deal is delayed due to the corona crisis, but is still on the table. Aramco intends to acquire 20% of Reliance's chemical company for a total value of about $ 15 billion, subject to a feasibility study currently underway.
A comparison of Aramco's results to the other giants in the sector gives them further validity. According to the first half, the aggregate net profit of the five largest energy companies in the world - Chevron, ExxonMobil, Royal Dutch, British Petroleum and Total - amounted to about $ 16.7 billion, or less than Aramco's. For example, ExxonMobil reported net income of $ 4.69 billion, or $ 1.10 per share, in the second quarter compared to a loss of $ 1.08 billion, or 26 cents per share, a year earlier. Royal Dutch also reported its highest quarterly profit in more than two years - $ 5.53 billion compared to $ 638 million a year earlier.
סעודיה כיווצה את מגזר הנפט, אך רווחי אראמקו עלו ב־288% | כלכליסט
מדיניות הממלכה לגיוון הכלכלה הקטינה ב־7% את חלקו של הנפט בתמ"ג, אבל זה לא הפריע לנכס החשוב ביותר במשק הסעודי לרכוב על התחזקות הביקושים העולמיים. השאלה הגדולה היא מה תהיה השפעת זן דלתא
