Saudi Aramco's Q1 Net Profit Rises 30% on Higher Oil Prices and Better Pandemic Outlook

Saudi Arabia's oil giant Aramco said on Tuesday that its net profit increased by 30 per cent in the first quarter of 2021, due to higher oil prices and an improved economic environment amid the pandemic.

Its net income this quarter reached $21.7 billion compared to $16.7 billion in the same period last year, DPA news agency said, according to IANS.

The company said it will distribute cash dividends totalling $18.8 billion, due in the second quarter.

Saudi Aramco
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"Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming. And while some headwinds still remain, we are well-positioned to meet the world's growing energy needs as economies start to recover," Aramco President and CEO Amin Nasser, said in a statement.

The results reflect a dramatic shift from last year due to the coronavirus pandemic and lower oil prices.

In 2020, Aramco said its net profit fell by nearly half of what it was in 2019.

Saudi Aramco
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It was reported last month that China's sovereign wealth fund China Investment Corporation (CIC) was in talks to buy stake in Aramco. The report came after Riyadh said it was selling 1 percent stake in the world's largest oil company. Apart from CIC, other Chinese investors were also in talks to buy a stake in Saudi Aramco, Reuters reported. Saudi Arabia is the world's biggest oil exporter and this gives unmatched heft to Saudi Aramco, making it a prized destination for global investors.

Aramco's initial public offering in 2019 had raised $25.6 billion while further share sale under "greenshoe option" brought in an additional $29.4 billion.