Analysts predict tripling of #Saudi Aramco profit as upstream earnings increase

Analysts predict tripling of Saudi Aramco profit as upstream earnings increase

Saudi Aramco will post a second-quarter profit of $24.7 billion, a year-on-year increase of more than 250 percent as the price of crude surged from the pandemic-hit lows of last year, analysts said before it reports financial results this Sunday.

Bank of America predicts a net profit of $24 billion in the second quarter, up 16 percent from the previous three months. JPMorgan estimates $23.7 billion, while Alrajhi Capital is expecting Aramco to report $25.3 billion.

“Against a positively trending demand/price backdrop, we expect a robust quarterly net income print from Aramco,” JPMorgan analyst Christian Malek wrote in a report to investors.

All eyes will be on the size of Aramco’s dividend, which it maintained at $75 billion last year even as demand for crude and related products collapsed amid the COVID-19 pandemic.