Saudi Aramco reported its Q1 2021 results, with $21.7 billion in net income, an increase of 30% compared to the $16.7 billion net income for same period in 2020.
The company attributed the growth to a stronger oil market and higher refining and chemicals margins, but noted that it was offset by lower production. Aramco reported an average total hydrocarbon production of 11.5 million barrels per day of oil equivalent in the first quarter of 2021, including 8.6 million barrels per day of crude oil.
“The momentum provided by the global economic recovery has strengthened energy markets, and Aramco’s operational flexibility, financial agility and the resilience of our employees have contributed to a strong first quarter performance,” Aramco CEO Amin Nasser said. “For our customers, we remain a supplier of choice, and for our shareholders we continue to deliver an exceptional quarterly dividend.”
It paid its Q4 2020 dividend of $18.8 billion in Q1 2021, and declared that the the $18.8 billion dividend for the first quarter would be paid in Q2.
“We made further progress towards our strategic objectives during the quarter and our portfolio optimization program continues to identify value creation opportunities, such as the recent announcement of our landmark $12.4 billion pipeline infrastructure deal,” he added. “We also expect Saudi Arabia’s newly-launched Shareek program to present growth opportunities, through incentives which encourage partnerships and investment.”
The Shareek programme will be spearheaded by Saudi Aramco and SABIC, with a private investment drive worth $1.3 trillion by 2030. In an April 2021 interview with Reuters, Nasser said that the investments would be guided by business, rather than the state.
Saudi Aramco’s pipeline deal, signed with a consortium led by EIG Global Energy Partners, will form subsidiary Aramco Oil Pipelines Company, netting the Saudi oil company $12.4 billion in upfront proceeds upon closing. The company will lease usage rights for Aramco’s stabilised crude oil pipline network for a 25-year period.
“Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming,” Nasser said. And while some headwinds still remain, we are well-positioned to meet the world’s growing energy needs as economies start to recover.”
The results follow news that Saudi Crown Prince Mohammed bin Salman could consider selling a 1% stake in Aramco to a ‘leading global energy company’. The stake would be worth around $19 billion, but the crown prince did not give any further information about the potential buyer or the timeline for the deal.
Saudi Aramco listed 2% of its shares on the Saudi bourse for $29.4 billion in 2019, making it the world’s largest initial public offering in history.
