Oil giant Saudi Aramco on Tuesday reported a $42.4 billion profit in the third quarter of this year, 39% more than in the same period last year, thanks to higher global energy prices that have filled the kingdom’s coffers but helped fuel inflation around the world.
The profits of the oil firm will be used to fund the kingdom’s plans for a futuristic city on the Red Sea coast. The American consumer is being ripped off by higher prices at the pump.
Tensions have chilled relations between Riyadh and Washington before the elections.
In a note to investors, the predominantly state-owned Saudi Arabian Oil Co. said that its average barrel of crude sold for $70 in the third quarter, up from $80 at the same point last year.
Just before its second-quarter results this year saw a profit of $48.4 billion, it was the second- largest quarterly profit in the company’s history.
In the first four years of its existence, it has made profits of $130.3 billion, compared to $70.6 billion in the first year.
It made $30.4 billion in last year’s third quarter.
Given the world’s need for more affordable and reliable energy, our long-term view is that oil demand will continue to grow for the rest of the decade. In a statement, he stated.
The world’s highest paying company will keep its dividend at $18.6 billion this quarter.
It was just shy of $95 a barrel Tuesday. The piece of Aramco that the kingdom put on Riyadh’s Tadawul stock market stood at $9.29 a share before trading Tuesday, putting its valuation at $2 trillion. Only Apple has a valuation of more.
Saudi Arabia is one of the cheapest places in the world to produce crude because of it’s vast oil resources. According to the Institute of International Finance, Saudi Arabia will make an additional 40 billion dollars a year if the price of a barrel of oil increases.