The net profit for the third quarter of the year more than doubled for the Saudi Arabian state oil producer Aramco.

The oil producer said the profits soared owing to rising crude oil prices and volumes sold, surpassing the forecasted figures by analysts.

According to a bourse filing on Sunday, Aramco’s net income spiked up to $30.4bn for the quarter from $11.8bn a year prior. The figure exceeds the median net profit forecast of $28.4bn by four analysts.

Aramco’s chief executive Amin Nasser issued a statement saying, “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”.

Oil prices have jumped to multi-year highs in the wake of global crude futures rising 4.5 percent in the quarter. The decision made by OPEC+ to continue its planned output increase instead of increasing it further contributed to the soaring prices and fuelled global supply concerns.

Brent oil futures are being traded at about $84.4 a barrel, jumping up by 63 percent this year. Similarly, benchmark US crude is trading at nearly $83.57 a barrel, up by around 70 percent during the same period.

Aramco’s capital expenditure also increased by 19 percent from the previous year reaching $7.6bn in the quarter.

The oil producer’s free cash flow went up by $28.7bn from $12.4bn. The company declared a dividend of $18.8bn for the third quarter, in adherence to its guidance.

Soaring oil prices and volumes have boosted Aramco’s share price by about 8 percent this year, valuing the oil giant at $2tn.

The story was filed by the News Desk.
The Desk can be reached at info@thecorrespondent.com.pk.

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