Saudi Arabia’s leading oil company Aramco saw net profit increase 90% in Q2 2022 | World News
Saudi Arabia’s oil giant Aramco revealed a profit of $48.4 billion (£40 billion) for the second quarter of 2022 – up 90% on the same period last year.
The sum broke the company’s quarterly profit record set in May, with energy prices soaring due to By Vladimir Putin Invasion of Ukraine resulted in large sums of money for oil producers.
The $48.4 billion figure is higher than all of the first six months of last year, when profits hit $47 billion (£39 billion).
This is also the company’s highest quarterly earnings since it went public in 2019, when Saudi Arabic The government, which owns 98% of the company, sold a 1.7% stake mainly to Saudi public and regional institutions.
Aramco’s half-year profit hit $87.9bn (£72.4m) as oil prices remained high globally, putting Aramco on track to outpace full-year 2019 earnings, pre-pandemic, when profits profits reached $88 billion.
The company said profits were mainly driven by higher crude oil prices and sales volumes, as well as higher refining margins.
President Putin’s invasion of Ukraine has prompted Western nations to pledge to limit their dependence on Russian oil for energy purposes.
However, oil prices rose before the war as countries recovered from the pandemic and supply could not keep up with demand.
Back in May, Aramco overtakes Apple to become the world’s most valuable company.
Earnings for global energy companies, such as BP and Shell, surged to their highest levels in at least a decade as commodity prices rose, even as many of them declined in asset values. by leaving Russia.
The huge revenues have seen growing calls in the UK for a wind tax on oil and gas companies to help households cope with the cost of living. crisis, fueled by rising energy prices.
Labor has been calling for a favorable tax on the profits of oil companies for more than a year, with climate change and net zero secretary Ed Miliband previously saying it is “an unlikely case”. payable”.
The party said funds from such a tax could be used to further support UK households amid the cost of living crisis.
Rising oil prices have given a huge boost to the Saudi economy, which reported its fastest economic growth in a decade in the first quarter of the year.
But earlier this week, Conservative leadership candidate Liz Truss defended earnings at energy companies amid soaring prices, saying profits should not be seen as “dirty and evil”. .
She calls the concept of levy a “gambling business”.
Corporate income tax is a one-time fee levied on companies that benefit from circumstances for which they are not liable.
