Saudi Aramco posted its highest profit since its record stock-market listing, after oil prices surged in the wake of Russia’s invasion of Ukraine.
Aramco, which last week surpassed Apple Inc. to become the world’s most valuable company, followed Big Oil rivals such as Shell Plc and BP Plc in reporting bumper earnings for the first quarter. Like them, the Saudi Arabian firm’s results were boosted by crude’s jump to $110 a barrel after Moscow’s attack in late February.
State-controlled Aramco made net income of $39.5 billion, up 82% from a year earlier, when global energy demand was still severely suppressed by the coronavirus pandemic.
The company’s free cash flow rose almost to $31 billion, though it opted to keep its quarterly dividend unchanged at $18.8 billion. That enabled Aramco to reduce its leverage. Gearing, a measure of debt to equity, fell from 14% in December to 8% at the end of March. The gauge spiked above 20% during the pandemic as profit slumped, forcing Aramco to borrow more.
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