SAUDI Aramco’s earnings has increased 158% year-on-year in the third quarter on higher oil prices and volumes sold as the global economy recovered, said the company today.

The profits surge come as world leaders prepare for the United Nation’s COP26 climate summit in Glasgow, the United Kingdom, today, a key meeting in the battle against global warming.

Aramco’s net income was US$30.4 billion (RM125 billion) in the third quarter, up from US$11.8 billion in Q3 last year, with free cash flow more than doubling to US$28.7 billion. Shareholders will receive US$18.8 billion in dividends.

The profits are the biggest since Aramco listed on the Saudi stock exchange in December 2019, before suffering a 44.4% slump last year.

“The increase in net income is primarily the result of higher crude oil prices and volumes sold,” said the Saudi oil giant in its earnings statement.

It cited “stronger refining and chemicals margins in Q3, which are underpinned by rebounding global energy demand and increased economic activity in key markets”.

The latest rise comes after profits nearly quadrupled in Q2, as the world economy bounced back from the Covid-19 crisis, lifting demand and pushing oil prices back above US$80 a barrel.

“Some headwinds still exist for the global economy, partly due to supply chain bottlenecks, but we are optimistic that energy demand will remain healthy for the foreseeable future,” said Aramco chief executive Amin Nasser.

He claimed that Aramco will “build on our track record of low-cost and low-carbon intensity performance” after announcing last week that it intends to achieve net zero carbon emissions in its operations by 2050.

The carbon-neutrality pledge by Aramco, the biggest oil producer in the world, has been met by scepticism by environmentalists as it excludes emissions from the products of the company.

Saudi Arabia, one of the biggest polluters and top oil exporters in the world, has also pledged to achieve net zero carbon emissions by 2060.

Earlier this month, Aramco announced that it plans to raise oil production to a maximum sustainable capacity of 13 million barrels a day by 2027.

In the latest statement, it said its total hydrocarbon production is the equivalent of 12.9 million barrels a day, including 9.5 million barrels of crude.

It also has a 30% stake in the 1.5GW Sudair solar plant, which will be one of the biggest in the region and will start producing in the second half of next year.

It has expanded an investment programme partly focused on sustainability and will be “targeting new opportunities to achieve carbon footprint reduction”, it added. – AFP, October 31, 2021.