Saudi Aramco, the oil-producing company, achieved a 30 percent increase in its net profit during the first quarter of 2021 compared to last year, an increase that exceeded local expectations.
The profits of global energy companies such as "Exxon Mobil" rose on the back of the rise in crude oil prices, which rose by about a third this year, as fuel demand recovered from the epidemic and the global surplus of crude oil shrank.
Aramco CEO Amin Nasser said in a statement: "Given the positive indicators of energy demand in 2021, there are more reasons for optimism that better days are coming."
"While there are still some headwinds, we are well positioned to meet the world's growing energy needs as economies start to recover," he added.
The net profit of the world's largest oil producing company rose to $ 21.7 billion for the quarter ended March 31, from $ 16.7 billion the year before.
Aramco was expected to post a net profit of $ 19.48 billion, according to an average based on the estimates of 5 analysts.
Aramco said profits were boosted by higher crude prices and higher refining and chemical margins, which helped offset lower production.
The OPEC Plus group, the alliance that includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and several other producers, has reduced production to support prices, but agreed on a plan in April to begin gradually easing those restrictions from May 1.
Aramco, which cut its production as part of that agreement and as a result of additional voluntary cuts to production in Saudi Arabia, said that global demand for petroleum products is recovering from its lowest levels in 2020 but remains below pre-epidemic levels.
Aramco announced a dividend of $ 18.8 billion for the first quarter, to be paid in the second quarter, in line with the company's directive to distribute $ 75 billion for this year.
Aramco expected capital expenditures to be around $ 35 billion in 2021, compared to the original $ 40 billion guidance to $ 45 billion.
Aramco's total oil and gas production averaged 11.5 million barrels per day in the first quarter of 2021, including 8.6 million barrels per day of crude oil.
Saudi Crown Prince Mohammed bin Salman said last week that more Aramco shares could be sold in the next year or two, including to international investors.
He said the kingdom was in talks to sell 1 percent to a leading global energy company.
More than a month ago, Mohammed bin Salman announced a new initiative called "partner", whereby large Saudi companies, including Aramco, will lead private sector investments in the local economy over the next ten years.
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