Aramco

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escveritas
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Aramco

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Aramco announces second quarter and half-year 2020 results

Continued progress on strategy and commitment to dividend enabled by resilience and financial prudence
• Net income: $6.6 billion (Q2) / $23.2 billion (H1)
• Cash flow from operating activities: $12.3 billion (Q2) / $34.8 billion (H1)
• Free cash flow*: $6.1 billion (Q2) / $21.1 billion (H1)
• Q1 dividend of $18.75 billion paid in the second quarter; Q2 dividends of $18.75 billion to be paid in the third quarter
• Completion of SABIC transaction is a milestone for Downstream growth strategy

Dhahran, Saudi Arabia, August 9, 2020 –

The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its results for the second quarter and first half of 2020, highlighting
the Company’s financial and operational resilience, and commitment to shareholders despite challenging market conditions caused by the COVID-19 pandemic.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said: “Despite COVID-19 bringing the world to a standstill, Aramco kept going. We have proven our financial resilience and operational reliability, setting a record in our business operations, while at the same time taking steps to ensure the health and safety of our people.

“Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results. Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce, and unrivalled financial and operational strength. This helped us deliver on our plan to maintain a second quarter dividend of $18.75 billion to be paid in the third quarter.

“We will continue to pursue our long-term growth and diversification strategy to capture unrealized and additional value from every hydrocarbon molecule we produce – driving global commerce and enhancing people’s lives. The completion of our historic acquisition of a 70% stake in SABIC is yet more evidence of that forward momentum and a testament to our healthy financial position.

“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies. Meanwhile, we continue to place people’s safety first and have adapted to the new normal, implementing wide-ranging precautions to limit the
spread of COVID-19 wherever we operate.

“We are determined to emerge from the pandemic stronger and will continue making progress on our long-term strategic journey, through ongoing investments in our business – which has one of the lowest upstream carbon footprints in the world.”

Financial Highlights

Despite continued global economic disruption and challenges facing the energy sector, Aramco continued to deliver on its commitment to shareholders by declaring a dividend of $18.75 billion for the second quarter, compared to $13.4 billion for the second quarter of 2019.

Aramco navigated challenging market conditions to record net income of $6.6 billion for the second quarter and $23.2 billion for the first half of 2020, respectively, compared to $24.7 billion and $46.9 billion in the corresponding periods of 2019. This demonstrates Aramco’s agility, strength and resilience across market cycles.

Free cash flow* was $6.1 billion in the second quarter and $21.1 billion for the first half of 2020, respectively, compared to $20.6 billion and $38.0 billion for the same periods in 2019. The gearing ratio* was 20.1% at the end of June, mainly reflecting deferred consideration for the Saudi Basic Industries Corporation (SABIC) acquisition and the consolidation of SABIC’s net debt onto Aramco’s balance sheet.

Capital expenditure was $6.2 billion in the second quarter and $13.6 billion for the first half of 2020. Aramco continues to implement its capital spending optimization and efficiency program, and expects capital expenditure to be at the lower end of the $25 billion to $30 billion range for
2020.

Operational Highlights

The COVID-19 pandemic has spread rapidly throughout the world, resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas and petroleum products.

Under these challenging market conditions, Aramco continued its strong track record of reliable supply, achieving 99.8% reliability in the delivery of crude oil and other products in the second quarter of 2020.

The Company demonstrated reliable upstream performance with total hydrocarbon production of 12.7 million barrels per day of oil equivalent in the second quarter of 2020. Aramco achieved a historic highest single day crude oil production of 12.1 million barrels on April 2, 2020.

To meet future global and domestic energy demand, Aramco continues to expand its gas business. In line with this strategy, the Fadhili Gas Plant reached its full production capacity of 2.5 billion standard cubic feet per day during the second quarter, after successfully completing its commissioning activities.

The Downstream business continues to deliver on its long-term strategy of strategic integration and diversification.

In June 2020, Aramco successfully completed the acquisition of a 70% stake in SABIC, for $69.1 billion. SABIC is a world-class, diversified petrochemicals company with complementary chemicals capabilities. The acquisition enhances Aramco’s existing Downstream portfolio, accelerates its petrochemicals growth, increases existing chemicals volumes and expands its international reach.

In July 2020, the Oil and Gas Climate Initiative (OGCI) member companies announced a target to reduce the average carbon intensity of their aggregated upstream oil and gas operations to between 20 kg and 21 kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe) by 2025, from
a collective baseline of 23 kg CO2e/boe in 2017. Aramco, an OGCI member, achieved an upstream carbon intensity of 10.4 kg CO2e/boe in 2019. The Company’s Greenhouse Gas emissions were verified by an independent third party.
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Re: Aramco

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Aramco announces second quarter and half-year 2020 results

Continued progress on strategy and commitment to dividend enabled by resilience and financial prudence

• Net income: $6.6 billion (Q2) / $23.2 billion (H1)
• Cash flow from operating activities: $12.3 billion (Q2) / $34.8 billion (H1)
• Free cash flow*: $6.1 billion (Q2) / $21.1 billion (H1)
• Q1 dividend of $18.75 billion paid in the second quarter; Q2 dividends of $18.75 billion to be paid in the third quarter
• Completion of SABIC transaction is a milestone for Downstream growth strategy

Dhahran, Saudi Arabia, August 9, 2020 – The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its results for the second quarter and first half of 2020, highlighting the Company’s financial and operational resilience, and commitment to shareholders despite challenging market conditions caused by the COVID-19 pandemic.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said: “Despite COVID-19 bringing the world to a standstill, Aramco kept going. We have proven our financial resilience and operational reliability, setting a record in our business operations, while at the same time taking steps to ensure the health and safety of our people.

“Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results. Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce, and unrivalled financial and operational strength. This helped us deliver on our plan
to maintain a second quarter dividend of $18.75 billion to be paid in the third quarter.

“We will continue to pursue our long-term growth and diversification strategy to capture unrealized and additional value from every hydrocarbon molecule we produce – driving global commerce and enhancing people’s lives. The completion of our historic acquisition of a 70% stake in SABIC is yet more evidence of that forward momentum and a testament to our healthy financial position.

“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies. Meanwhile, we continue to place people’s safety first and have adapted to the new normal, implementing wide-ranging precautions to limit the
spread of COVID-19 wherever we operate.

“We are determined to emerge from the pandemic stronger and will continue making progress on our long-term strategic journey, through ongoing investments in our business – which has one of the lowest upstream carbon footprints in the world.”

Financial Highlights

Despite continued global economic disruption and challenges facing the energy sector, Aramco continued to deliver on its commitment to shareholders by declaring a dividend of $18.75 billion for the second quarter, compared to $13.4 billion for the second quarter of 2019.

Aramco navigated challenging market conditions to record net income of $6.6 billion for the second quarter and $23.2 billion for the first half of 2020, respectively, compared to $24.7 billion and $46.9 billion in the corresponding periods of 2019. This demonstrates Aramco’s agility, strength and resilience across market cycles.

Free cash flow* was $6.1 billion in the second quarter and $21.1 billion for the first half of 2020, respectively, compared to $20.6 billion and $38.0 billion for the same periods in 2019. The gearing ratio* was 20.1% at the end of June, mainly reflecting deferred consideration for the Saudi Basic Industries Corporation (SABIC) acquisition and the consolidation of SABIC’s net debt onto Aramco’s balance sheet.

Capital expenditure was $6.2 billion in the second quarter and $13.6 billion for the first half of 2020. Aramco continues to implement its capital spending optimization and efficiency program, and expects capital expenditure to be at the lower end of the $25 billion to $30 billion range for 2020.

Operational Highlights

The COVID-19 pandemic has spread rapidly throughout the world, resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas and petroleum products. Under these challenging market conditions, Aramco continued its strong track record of reliable supply, achieving 99.8% reliability in the delivery of crude oil and other products in the second quarter of 2020.

The Company demonstrated reliable upstream performance with total hydrocarbon production of 12.7 million barrels per day of oil equivalent in the second quarter of 2020. Aramco achieved a historic highest single day crude oil production of 12.1 million barrels on April 2, 2020.

To meet future global and domestic energy demand, Aramco continues to expand its gas business. In line with this strategy, the Fadhili Gas Plant reached its full production capacity of 2.5 billion standard cubic feet per day during the second quarter, after successfully completing its commissioning activities.

The Downstream business continues to deliver on its long-term strategy of strategic integration and diversification. In June 2020, Aramco successfully completed the acquisition of a 70% stake in SABIC, for $69.1 billion. SABIC is a world-class, diversified petrochemicals company with complementary chemicals capabilities. The acquisition enhances Aramco’s existing Downstream portfolio, accelerates its petrochemicals growth, increases existing chemicals volumes and expands its international reach.

In July 2020, the Oil and Gas Climate Initiative (OGCI) member companies announced a target to reduce the average carbon intensity of their aggregated upstream oil and gas operations to between 20 kg and 21 kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe) by 2025, from a collective baseline of 23 kg CO2e/boe in 2017. Aramco, an OGCI member, achieved an upstream carbon intensity of 10.4 kg CO2e/boe in 2019. The Company’s Greenhouse Gas emissions were verified by an independent third party.
escveritas
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Re: Aramco

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Aramco announces third quarter 2020 results

Continued delivery on long-term strategy and commitment to dividend despite ongoing global challenges
• Net income: $11.8 billion
• Cash flow from operating activities: $18.8 billion
• Free cash flow*: $12.4 billion
• Q2 dividend of $18.75 billion paid in the third quarter; Q3 dividend of $18.75 billion to be paid in the fourth quarter

Dhahran, Saudi Arabia, November 3, 2020 – The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its financial results for the third quarter of 2020. These results highlight the Company’s financial and operational strength, despite market volatility and the impact of COVID-19 on the global economy.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said: “We saw early signs of a recovery in the third quarter due to improved economic activity, despite the headwinds facing global energy markets. Meanwhile, we maintained our commitment to shareholder value by declaring a dividend of $18.75 billion for the third quarter.

“Aramco’s integration with SABIC is proceeding as planned. Our resilience is supported by our unique scale, low upstream carbon intensity and low production costs. As the global economic and social landscape evolves, these strengths and our continued drive to lower GHG emissions mean we are well positioned to support the energy needs of the global economic recovery.

“We continue to adopt a disciplined and flexible approach to capital allocation in the face of market volatility. We are confident in Aramco’s ability to manage through these challenging times and deliver on our objectives.

“We are making progress on multiple fronts, including the world’s first blue ammonia shipment for zero-carbon power generation in Japan – further strengthening our focus on new and innovative solutions that contribute to the global energy transition.”

Financial Highlights

Aramco continues to demonstrate its strength and resilience across economic cycles, navigating challenging market conditions to record net income of $11.8 billion and free cash flow* of $12.4 billion in the third quarter of 2020.

Aramco declared a dividend of $18.75 billion for the quarter.

Q3 capital expenditure was $6.4 billion and Aramco continues to execute capital spending optimization and efficiency programs in response to the current business environment.

Operational Highlights

Total hydrocarbon production for the first nine months of 2020 was 12.4 million barrels per day of oil equivalent, of which 9.2 million barrels per day was crude oil.

The Company delivered crude and other products with 100% reliability in the third quarter of 2020, continuing its strong track record of supply reliability.

Aramco achieved a record historic single-day natural gas production of 10.7 bscfd on August 6, 2020 from both conventional and unconventional fields.

Successful exploration activities resulted in two successful unconventional field discoveries in the third quarter, both in the northern part of the Kingdom; one field with both oil and gas reservoirs and another field with a gas reservoir.

The Company’s Khurais oil facility was recognized by the World Economic Forum as a leader in the adoption and integration of cutting-edge technologies of the Fourth Industrial Revolution (4IR), including artificial intelligence and industrial robotics. Khurais became Aramco’s second
facility to join WEF’s Global Lighthouse Network – a select group of just 54 facilities worldwidethat have shown leadership in 4IR technologies.

The Downstream business continues to focus on enhancing integration and creating growth opportunities across the hydrocarbon value chain.

Following the successful close of the SABIC transaction, the third quarter of 2020 marks the first full quarter in which SABIC’s financials are incorporated into Aramco’s Downstream results. Integration with SABIC continues to progress and drives forward the Downstream strategy of creating value through integration across the hydrocarbon value chain.

Aramco continued to demonstrate its focus on sustainability with the world’s first cargo of highgrade blue ammonia, which was shipped from Saudi Arabia to Japan for use in zero-carbon power generation. The process – a collaboration between Aramco, SABIC and the Institute of Energy Economics, Japan - involved the capturing of 50 tons of associated carbon dioxide (CO2) emissions for use in methanol production and enhanced oil recovery.
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Re: Aramco

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The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its full-year 2020 results, demonstrating exceptional resilience despite the macroeconomic impact of COVID-19 and delivering on its intended dividend payments to shareholders.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said:

“In one of the most challenging years in recent history, Aramco demonstrated its unique value proposition through its considerable financial and operational agility. Our exceptional performance during such testing times owed much to the unwavering spirit and resilience of our employees, who set operational records and continued to meet the world’s energy needs both safely and reliably.

“As the enormous impact of COVID-19 was felt throughout the global economy, we intensified our strong emphasis on capital and operational efficiencies. As a result, our financial position remained robust and we declared a dividend of $75 billion for 2020.

“At the same time, the accelerated deployment of digital technologies across the company significantly enhanced our performance and we continued to make progress on breakthrough low-carbon solutions.

“Looking ahead, our long-term strategy to optimize our oil and gas portfolio is on track and, as the macro environment improves, we are seeing a pick-up in demand in Asia and also positive signs elsewhere. We remain confident that we will emerge on the other side of this pandemic in a position of strength.”

Financial Highlights
Aramco achieved a net income of $49 billion in 2020, one of the highest earnings of any public company globally. The Company displayed strong financial resilience in one of the most challenging periods for the industry, during which revenues were impacted by lower crude oil prices and volumes sold, and weakened refining and chemicals margins.
Aramco declared a dividend of $75 billion for the year, which reflects the outcome of the Company’s strong performance. The Company continues to preserve a strong balance sheet and its gearing ratio at December 31, 2020, was among the lowest in its industry. Meanwhile, its ROACE of 13.2% was the highest in the industry.

Through its flexible capital program and prudent financial management, the Company was able to adjust spending and focus on high-return opportunities. Capital expenditure in 2020 was $27 billion due to the implementation of optimization and efficiency programs, representing a significant saving on capital expenditure of $33 billion in 2019.

The Company continues to assess its capital expenditure and efficiency programs, and expects capital expenditure for 2021 to be around $35 billion, significantly lower than the previous guidance of $40-$45 billion.

Aramco’s international bond issuance in the fourth quarter achieved record demand for a 50-year tranche and was 10 times oversubscribed compared to its initial offering size. This global investor interest demonstrated market confidence in the Company’s long-term strategy and performance outlook.

Operational Highlights
In 2020, Aramco’s average hydrocarbon production was 12.4 million barrels per day of oil equivalent, including 9.2 million barrels per day (mmbpd) of crude oil.

In April, Aramco achieved the highest single day crude oil production in its history of 12.1 million barrels per day. The Company achieved another milestone in August, producing a single-day record of 10.7 billion standard cubic feet per day (bscfd) of natural gas from its conventional and unconventional fields. Both records were achieved despite lower capital expenditure in 2020.

Aramco continued its strong track record of supply reliability, despite disruptions caused by COVID-19, by delivering crude oil and other products with 99.9% reliability in 2020.

Aramco’s ambition to further expand its downstream business took a significant step forward with the acquisition of a majority stake in SABIC in June, transforming the Company into a major global petrochemical player with operations in more than 50 countries. In 2020, Aramco also announced a Downstream reorganization intended to maximize value from its global network of assets.

Technology and innovation are key to delivering more energy with fewer emissions. Aramco continued to make advances in cutting-edge technology and received a company record of 683 U.S. patents in 2020 - among the highest in its industry.

Aramco maintained one of the lowest upstream carbon footprints in the industry, achieving an estimated upstream carbon intensity of 10.5 Kg of CO2 per barrel of oil equivalent in 2020. The Company’s estimated upstream methane intensity was 0.06%. These accomplishments are the result of the Company’s decades-long reservoir management and production approach, which includes leveraging advanced technologies and minimizing emissions and flaring.

The Company is well positioned to capitalize on developments in hydrogen, given the Company’s scale, infrastructure, low costs and low upstream carbon intensity.
One promising area is the conversion of hydrocarbons to hydrogen and then to ammonia, while capturing the CO2 created during the process. In August, Aramco exported the world’s first shipment of high-grade blue ammonia to Japan for use in zero-carbon power generation, a significant step towards sustainable hydrogen usage.

In January 2020, Aramco joined the Hydrogen Council as a steering member. The organization promotes collaboration between governments, industry and investors to provide guidance on accelerating the deployment of hydrogen solutions globally.
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Re: Aramco

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Aramco announces first quarter 2021 results
DHAHRAN, May 04, 2021

Net income: $21.7 billion
Cash flow from operating activities: $26.5 billion
Free cash flow*: $18.3 billion
Q4 2020 dividend of $18.8 billion paid in the first quarter; Q1 2021 dividend of $18.8 billion to be paid in the second quarter

The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its first quarter financial results, posting a 30% year-on-year increase in net income to $21.7 billion and declaring a dividend of $18.8 billion to be paid in Q2. The results were underpinned by higher oil prices and an improved economic environment in the first three months of 2021.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said:
“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. For our customers we remain a supplier of choice, and for our shareholders we continue to deliver an exceptional quarterly dividend.

“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. We also expect Saudi Arabia’s newly-launched Shareek program to present growth opportunities, through incentives which encourage partnerships and investment.

“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.”

Financial Highlights
Aramco’s net income was $21.7 billion for the first quarter, a 30% increase from $16.7 billion in Q1 2020, primarily driven by a stronger oil market and higher refining and chemicals margins, partly offset by lower production.

Cash flow from operating activities and free cash flow* was $26.5 billion and $18.3 billion respectively in the first quarter, while first quarter capital expenditure stood at $8.2 billion.

Aramco's gearing ratio* remained unchanged at 23.0% on March 31, 2021, compared to December 31, 2020.

Aramco declared a dividend of $18.8 billion for the first quarter, to be paid in Q2 2021.

Operational Highlights

Aramco demonstrated reliable upstream performance with 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 Company maintained its exceptional track record as a global energy supplier, achieving 100% reliability in its deliveries to customers during the first quarter.

In January, Aramco partnered with STC, a leading telecom and technology services company, to launch one of the world’s most powerful supercomputers, Dammam 7. Its high-performance computing capability of 55.4 petaflops presents new opportunities in both exploration and development, enhancing Aramco’s ability to predict the location of new reserves using sophisticated imaging and artificial intelligence deep learning technologies. Dammam 7 supports Aramco’s digital transformation program, complementing a suite of advanced technologies that are reshaping core operations, driving efficiencies and reinforcing its industry leadership.

During the first quarter, Aramco and The Dow Chemical Company, partners in the Sadara Chemical Company (Sadara) joint venture, entered into agreements relating to their Sadara joint venture. This includes extending the debt repayment tenure, a grace period for interest payments and sponsor guarantees. It further includes other agreements with respect to procurement of feedstock and marketing rights for Sadara’s finished products.

Aramco planted more than 500,000 trees during the first quarter, successfully completing its program to plant one million trees. The program’s main objective is to mitigate desertification, sequester carbon, and enhance native biodiversity. The One Million Trees Initiative aligns with the United Nations Biodiversity and Sustainability Development Goals, and is part of the Company’s commitment to protecting the environment.

The Company also contributed to COVID-19 vaccination efforts during the first quarter to protect its workforce and the wider community from the risk of infection. As of April 30, more than 178,000 Aramco employees, retirees and their dependents had received vaccinations. This includes around 85% of the Aramco workforce. These were administered either through Aramco’s vaccination program, being conducted from 14 locations across Saudi Arabia in conjunction with its medical partner Johns Hopkins Aramco Healthcare, or through a government vaccination scheme.
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Re: Aramco

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Aramco announces second quarter and half-year 2021 results
DHAHRAN, August 08, 2021
  • Net income: $25.5 billion (Q2) / $47.2 billion (H1)
  • Cash flow from operating activities: $30.1 billion (Q2) / $56.5 billion (H1)
  • Free cash flow*: $22.6 billion (Q2) / $40.9 billion (H1)
  • Gearing ratio*: 19.4% (June 30) compared to 23% at end of 2020
  • Q1 dividend of $18.8 billion paid in the second quarter; Q2 dividend of $18.8 billion to be paid in the third quarter
The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its second quarter 2021 financial results, reporting a 288% increase in net income from the same quarter of last year to $25.5 billion and declaring a dividend of $18.8 billion. The Company’s net income for the first half of the year was $47.2 billion, representing a 103% increase over the same period in 2020.

The results were primarily driven by higher oil prices and a recovery in worldwide demand, supported by the global easing of COVID-19 restrictions, vaccination campaigns, stimulus measures and accelerating activity in key markets.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said:
“Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum. While there is still some uncertainty around the challenges posed by COVID-19 variants, we have shown that we can adapt swiftly and effectively to changing market conditions.

“Our historic $12.4 billion pipeline deal was an endorsement of our long-term business strategy by international investors, representing significant progress in our portfolio optimization program. Our landmark $6 billion Sukuk reinforced our robust balance sheet, further diversifying our funding sources and expanding our investor base. And, once again, we delivered a dividend of $18.8 billion for our shareholders.

“We continue to move forward on a number of strategic programs, which focus on sustainability and low-carbon fuels, maximizing the value of our assets, and advancing our downstream integration and expansion journey. For all these reasons and more, I remain extremely positive about the second half of 2021 and beyond.”

Financial Highlights
Aramco’s net income was $25.5 billion in the second quarter of 2021, compared to $6.6 billion in the same quarter of 2020. Net income for the first half of 2021 was $47.2 billion, compared to $23.2 billion in the first half of 2020. The increase in both periods was primarily driven by higher crude oil prices, improved downstream margins and the consolidation of SABIC’s results, partially offset by lower crude oil volumes sold and higher crude oil production royalties.

Free cash flow* was $22.6 billion in the second quarter and $40.9 billion for the first half of 2021, compared to $6.1 billion and $21.1 billion, respectively, for the same periods in 2020.

The gearing ratio*was 19.4% on June 30, compared with 23% on December 31, 2020. The decrease was primarily due to higher cash and cash equivalents on June 30 2021, mainly driven by stronger operating cash flows and cash proceeds in connection with Aramco’s stabilized crude oil pipelines transaction.

Capital expenditure was $7.5 billion in the second quarter and $15.7 billion for the first half of 2021, representing an increase of 20% and 15%, respectively, compared with the same periods in 2020. This increase was primarily due to the start of initial phases of construction and procurement activities relating to increment projects, demonstrating the company’s ability to mobilize capital to target growth opportunities, and the consolidation of SABIC’s capital expenditure. At the same time, the Company maintains a highly disciplined and flexible approach to capital allocation, and continues to expect its 2021 capital expenditure to be approximately $35 billion.

Aramco closed a $12.4 billion pipeline infrastructure deal with an international consortium that acquired a 49% stake in the newly formed Aramco Oil Pipelines Company, in which Aramco remains the majority shareholder. Under a 25-year lease and leaseback agreement, Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments. This investment demonstrates investor confidence in the Company’s long-term outlook.

The Company raised $6 billion through the sale of US dollar-denominated Shari’a-compliant securities to leading institutional investors. The issuance comprised three tranches of direct and unsecured Sukuk trust certificates issued under Aramco’s newly established International Sukuk Program. Funds raised were allocated for general corporate purposes.

Operational Highlights
Aramco continued its strong track record of reliable supply, achieving 100% reliability in the delivery of crude oil and other products in the second quarter of 2021.

The Company also demonstrated its reliable Upstream performance, with average total hydrocarbon production of 11.7 million barrels per day of oil equivalent in the second quarter of 2021.

The Company successfully completed and tied-in the ‘Ain Dar and Fazran crude oil increments during the second quarter. These increments target secondary reservoirs with a combined production capacity of 175 mbpd.

Representing a significant step in SABIC becoming Aramco’s chemicals arm, Aramco is transferring the marketing and sales responsibility for a number of Aramco petrochemicals and polymers products to SABIC, and the offtake and resale responsibility of a number of SABIC products is being transferred to Aramco Trading Company (ATC). These changes are intended to focus SABIC on polymers and derivative products while ATC focuses on fuels, aromatics and MTBE, driving further operational efficiencies, strengthening the brands of both companies and improving overall competitiveness. Considerable synergies are being captured, mainly in procurement, supply chain, feedstock optimization, stream integration, operations and maintenance.

The Company continued to contribute to COVID-19 vaccination efforts during the second quarter to protect its workforce and the wider community from the risk of infection. The Company’s ongoing vaccination campaign for employees and their families complements a government vaccine program, resulting in 95% of employees and 70% of their dependants receiving at least one dose by the end of June.

Aramco participated in the creation of Altamayyuz Finance and Accounting Excellence Academy, a collaboration between leading accountancy firms and investment banks to establish a center of excellence for finance and accounting in Saudi Arabia. The academy aims to build the capabilities of top finance and accounting graduates, supporting growth of the region’s financial services sector and forming a highly-skilled talent pool for the Company and other private and public employers.
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