Saudi Arabia’s state oil producer Aramco reported on Sunday its earnings for the third quarter. Fueled by rising crude oil prices and surging demand, Aramco’s third-quarter net profit more than doubled, thereby earning the company its highest quarterly earnings since December 2019. This was also the strongest quarterly average crude price since Aramco’s shares began trading.
Aramco’s market valuation has just gone over $2 trillion, thereby meeting the target of Crown Prince Mohammed bin Salman. The oil producer’s shares gained 1% following the release of the earnings figures, thereby marking a 9% rise since the start of the year.
Amin Nasser, Aramco’s chief executive, had the following to say of Aramco’s financial performance: “Our exceptional third-quarter performance was a result of increased economic activity in key markets and a rebound in energy demand, as well as our unique low-cost position.”
The OPEC+ recently decided that, instead of raising production to meet global demand, it would maintain its planned output. This decision influenced the sustained increase in oil prices, with oil futures rising by 4.5% in the third quarter.
Several of Aramco’s competitors are also currently experiencing rising financial performances as of late, as Exxon Mobil Corp reported its highest quarterly net profit since the fourth quarter of 2017. Royal Dutch Shell, on the other hand, fell below analysts’ forecasts with a third-quarter profit of $4.13 billion.
