MOSCOW (MRC) -- Saudi Aramco's net profit rose by 39.5% year on year to Saudi Riyal (SR) 159.1bn in the third quarter on the back of higher crude oil prices and volumes sold, said Reuters.
Net income growth in the third quarter was partially offset by increased production royalties largely attributable to higher average effective royalty rate resulting from stronger crude oil prices and higher sales volumes, the company said in a filing to the Saudi bourse, Tadawul.
“Global demand for petroleum products remained strong in the first nine months of 2022, which resulted in higher prices and volumes sold for hydrocarbons and improved refining margins, compared to the same period in 2021,” the company said in a separate statement. Saudi Aramco’s downstream unit swung to a third-quarter loss before interest, income taxes and zakat (EBIT) of SR4.25bn in the third quarter from a gain of SR14.8bn in the same period in 2021.
The third-quarter loss at the downstream business was driven by by inventory re-valuation losses as refined product prices, while higher compared to the same period in 2021, experienced a significant decline in the third quarter of 2022.
The company said that its long-term view is that oil demand will likely continue to grow for the rest of the decade, as will the world’s need for more affordable, reliable, and sustainable energy.
“Aramco intends to meet this growing demand by capturing unique growth opportunities and expanding its Maximum Sustainable Capacity (MSC), while enhancing integration of its Upstream and Downstream businesses and growing its liquids-to-chemicals capabilities,” it added.
We remind, Aramco announced the creation of a USD1.5 billion Sustainability Fund to invest in technology that can support a stable and inclusive energy transition. It was unveiled at the sixth edition of the Future Investment Initiative (FII) and is among the largest sustainability-focused venture capital funds globally. Managed by Aramco Ventures, the venture capital arm of Aramco, the fund is an extension of the Company’s efforts to meet the world’s growing energy demand, with lower greenhouse gas emissions.