The oil giant of the world reported its second quarter results this week and the numbers are astounding!
With a solid recovery in Crude oil prices after the coronavirus crash, the top line and bottom line of energy companies like Aramco have seen a major glow up.
Saudi Aramco reported a 288% surge in its bottom line (net income) to $25.5 Billion in second quarter.
The rest of the year is also expected to perform on similar grounds with no slow down in sight, according to analysts.
Chief Executive of Saudi Aramco, Amin Nasser said “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”.
Other Major Oil Producers
Since the beginning of 2021, Crude oil has risen by more than 25% and the benefit to oil producers is evident. Last week, US-based energy giant Exxon Mobil also reported its second quarter earnings.
Exxon made a profit of $4.7 Bn in this quarter compared to same quarter last year when it suffered $1 Bn in losses. Even the European energy company RDS recorded its best quarterly earnings since the start of pandemic.
Why Is Crude Oil On The Rise?
The OPEC+ nations agreed to cut oil output which in turn acted as a catalyst for Brent Crude to touch the $70 mark.
However, it remains to be seen how these higher crude oil prices impact non-electric vehicle drivers as they push up the cost of petrol.
Saudi Aramco, famed as one of the most valuable companies in the world does not gel well with environmental and climate change activists.
The company is believed to contribute 4% to global greenhouse gas emissions since 1965.
Hence, the massive rise in Aramco’s profits in second quarter brought about a flood of criticism and negative comments from pro-environment and sustainability advocates. Tell us your thoughts in the comments.