Benzinga | Aug 8, 2021 10:32AM EDT

Saudi Aramco Q2 Profit Soars To Nearly 300% On Global Demand Recovery

On Sunday, the world's largest oil exporter Saudi Aramco reported that 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, with the global easing of COVID-19 restrictions, Reuters reports.

* The company declared a dividend of $18.8 billion in the second quarter. It will be paid in the third quarter.

* Aramco's free cash flow was $22.6 billion in the second quarter and $40.9 billion for the first half of 2021.

* Aramco's Capital expenditure was $7.5 billion in the second quarter and $15.7 billion for the first half of 2021.

* According to the company, 2021 capital expenditure was expected to be approximately $35 billion.

* In the second quarter of 2019, prior to the pandemic, the company posted a net profit of $24.7 billion.

* The company's net income fell by 44.4% to $49 billion in 2020 as demand for oil was hit due to the COVID-19 lockdowns.

* Washington DC-based EIG Global Energy Partners is buying 49% of Aramco's pipelines business for $12.4 billion.

* In a statement, Aramco's CEO Amin Nasser has said that global oil demand was expected to hit 99 million barrels a day by the end of the year and 100 million barrels next year.

* "We continue to move forward on a number of strategic programs, which focus on sustainability and low-carbon fuels, maximizing the value of our assets, and advancing our downstream integration and expansion journey," Nasser added.

* Other global oil giants have reported more robust profits this year. Exxon Mobil's (NYSE:XOM) net income was $4.69 billion, Royal Dutch Shell reported a quarterly profit of $5.53 billion.

* Last month, the company agreed 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.

* Aramco is still working to increase its capacity to 13 million barrels a day, Nasser indicated.

* Oil prices closed at $70.70 a barrel on Friday and have gained over 35% since the start of the year.

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