Saudi oil major Aramco sees 90% rise in net profit for Q2 2022 | World News

Saudi oil giant Aramco has revealed earnings of $48.4bn (£40bn) for the second quarter of 2022, a year-on-year increase of 90%.

The sum has broken the company’s quarterly earnings record set in May, with skyrocketing energy prices buoyed by vladimir putin invasion of Ukraine resulting in windfall profits for oil producers.

The $48.4bn figure is higher than in the first six months of last year, when profits hit $47bn (£39bn).

It’s also the company’s highest quarterly profit since it went public in 2019, when the Saudi Arabia The government, which owns 98% of the company, sold a 1.7% stake mainly to Saudi regional and public institutions.

Aramco’s half-year profit hit $87.9bn (£72.4m) as oil prices remain high globally, putting Aramco on track to far exceed full-year earnings of 2019, before the pandemic, when profits reached 88,000 million dollars.

The company said earnings were mainly driven by higher crude prices and volumes sold, and higher refining margins.

President Putin’s invasion of Ukraine has prompted Western countries to commit to curbing their reliance on Russian oil for energy purposes.

However, oil prices were already rising before the war as countries recovered from the pandemic and supply was unable to meet demand.

back in may, Aramco overtook Apple as the world’s most valuable company.

The profits of global energy companies such as BP and Shell have risen to their highest level in at least a decade on rising commodity prices, even as many of them have written down asset values ​​as a result of departure from Russia.

The hefty income has seen calls rise in the UK for a windfall tax on oil and gas companies to help households cope with the cost of living. crisis, which has been fueled by rising energy prices.

The Labor Party has been calling for a windfall tax on oil company profits for more than a year, with net zero and shadow climate change secretary Ed Miliband earlier saying it is “a case without response”.

The party says funds from such a tax could be used to provide extra support to households in the UK amid the cost of living crisis.

Rising oil prices have provided a huge boost to the Saudi economy, which posted its fastest economic growth in a decade during the first quarter of the year.

But earlier this week, Conservative leadership candidate Liz Truss defended energy company profits amid skyrocketing prices, saying profits should not be seen as “dirty and evil”.

He referred to the concept of a windfall tax as “hitting business.”

A windfall profits tax is a one-time charge imposed on businesses that have benefited from circumstances for which they were not responsible.

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