Energy giant Saudi Aramco said Sunday its second quarter profits for 2021 had nearly quadrupled compared to the same period last year on the back of higher oil prices.
Aramco said its net profit rose to $25.5 billion in the second quarter of the year, compared to $6.6 billion in the same quarter of 2020, owing to a stronger oil market and higher refining and chemicals margins, and with the easing of Covid-19 restrictions.
“Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum,” Aramco chief executive Amin Nasser said in a statement.
The announcement comes approximately two months after the company said it raised $6 billion from its first dollar-denominated Islamic bond sale, posting earlier this year a 30 percent jump in first quarter profits.
Aramco — the kingdom’s cash cow — posted a 44.4 percent slump in 2020 net profit, piling pressure on government finances as Riyadh pursues its multi-billion dollar projects to diversify the economy.
The company’s debt has climbed as Saudi Arabia was hammered last year by the double whammy of low prices and sharp cuts in production triggered by the coronavirus pandemic.
The world’s leading oil producers agreed last month to continue to modestly boost output from August reaching a compromise after the United Arab Emirates blocked a deal.
An OPEC+ meeting decided to raise output by 400,000 barrels per day (bpd) each month from August to help fuel a global economic recovery as the pandemic eases.