Oil: Soaring prices send giants Aramco and BP's profits soaring
Saudi oil company Aramco posted record profits like other industry giants after price hikes.
© REUTERS/Ahmed Jadallah
Text by: RFI Follow
3 mins
The British BP saw its profit excluding exceptional items more than double, but the group suffered a net loss.
The Saudi Aramco recorded a 39% increase in its net profit in the third quarter of 2022.
Advertising
Read more
Aramco's increase in net profit to $42.43 billion from $30.43 billion in the third quarter of 2021 was "
primarily due to higher crude oil prices and higher volumes sold
," it said. specified the firm on the site of the Riyadh Stock Exchange.
Flagship of the Saudi economy, which relies mainly on the export of oil, Aramco is overwhelmingly owned by the state.
The company particularly benefits from soaring prices, since it has one of the lowest production costs.
And Saudi Arabia
's economy
benefits
.
The country posted growth of 8.6% in the third quarter over one year.
But it can be noted that the kingdom's non-oil activities have also increased by 5.6% driven by the chemical and plastics industry, reflecting the reforms carried out in recent years to diversify the country's economy and make it less dependent on hydrocarbons. .
Losses despite significant cash inflows for BP
On the side of BP, the result, excluding exceptional items, the indicator most followed by the markets, reached 8.2 billion dollars, against 3.3 billion a year earlier.
The net loss is $2.2 billion over the period and is due to an “
unfavorable accounting effect
” of $10.1 billion.
The British company notably announced on Tuesday a share buyback program of 2.5 billion dollars, bringing the total of buybacks announced this year to 8.5 billion.
“
The results for this quarter show that we continue to perform well while transforming ourselves
,” said BP Chief Executive Bernard Looney, quoted in the press release.
The results of Aramco and BP are made public as the oil-exporting countries of OPEC +, Saudi Arabia and Russia in the lead,
are preparing to reduce their production
to support the prices of black gold.
For several days, oil companies based in the United States or elsewhere – Shell, TotalEnergies, ExxonMobil and Chevron – have been announcing record profits in the last quarter.
On Monday, US President Joe Biden also threatened to tax these exceptional profits linked to the conflict in Ukraine.
"
It's time for these companies to stop profiting from war, take responsibility for this country, leave their customers alone and still do well
," said the President.
The Americans will be able to judge who is on their side and who is only interested in their financial results.
»
The publication of these results comes a few days before the UN climate summit, COP27, aimed at curbing global warming, to which the oil industry largely contributes according to experts.
In 2021, ahead of the COP26 climate change summit, Saudi Arabia promised to achieve carbon neutrality by 2060, drawing skepticism from environmental campaigners.
►Also read: Climate commitments "very far" from meeting the 1.5°C target, warns the UN
At the International Petroleum Exhibition, Abu Dhabi and Riyadh plead for more investment in hydrocarbons
As COP27 begins on November 6, the International Petroleum Exhibition is being held in Abu Dhabi.
The United Arab Emirates and Saudi Arabia plead for more investment in hydrocarbons.
"
The world needs all possible solutions
", including gas and oil.
This is the credo of the Minister of Industry of the United Arab Emirates, which will host COP28 in 2023.
"
If we cancel all hydrocarbon investments, we will lose five million barrels of oil per day every year from current reserves
."
He plays on a sensitive chord: “
energy security is the basis of all economic and social progress” and even, according to him, of “climate progress
”.
Equally contradictory are the promises of the United Arab Emirates and Saudi Arabia.
The two neighbours, which are among the world's largest crude oil exporters, are committed to achieving their goal of net zero CO2 emissions by 2050 while "
increasing their production capacity
" of crude.
A dissonant speech compared to the statements last week of the UN Secretary General.
It would be "
stupid
", according to Antonio Guterres, to continue betting on fossil fuels which have "
led to the disaster
" of the energy crisis.
The International Energy Agency's (IEA) guide to neutrality by 2050 includes an immediate halt to investment in new fossil fuel projects.
Newsletter
Receive all the international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
Economy
Oil
UK
Saudi Arabia
COP27
Environment