Saudi Aramco: Oil Giant Makes Record $48.4B Quarterly Profit

Photo: Reuters [via The National]

The Facts

  • The Saudi Arabian Oil Co. posted the biggest quarterly adjusted profit of any globally listed company, recording on Sun. a net income increase of $48.4B in Q2, up from $25.5B a year earlier.

  • Besides large increases in oil prices since the beginning of the year, earnings jumped with help from volume sold and refining margins.

The Spin

Narrative A

As countries across the world suffer from inflation and high gas prices, oil companies, such as Saudi Aramco, are making an outrageous windfall. Russia's war in Ukraine was a blessing in disguise for Saudi Arabia, which has failed to diversify its economy and continues to rely on profits from the oil and gas sector worldwide for its income.

Narrative B

Though some said that the world would no longer rely on oil and gas, the last six months have proven otherwise. The world isn't ready for a complete transition to renewable energy yet. Oil-producing nations must continue to address the world's crucial thirst for energy and be fairly compensated for their efforts.

Nerd narrative

There's a 50% chance that fossil fuels will make up less than 50% of global primary energy consumption by July 2044, according to the Metaculus prediction community.

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