S04 ORME 3 2021 Saudi Aramco_Layout 1 07/05/2021 10:26 Page 12
Saudi Aramco Review
Image Credit : Aramco
Safaniya is the largest offshore oilfield in the world.
Looking forward to a
brighter future With higher oil prices, a 30% year-on-year increase in net income recorded in the first quarter of 2021 and the resumption of key projects, Aramco can look forward to brighter prospects this year. HINGS SEEM TO be looking up for Aramco. Despite the trials and tribulations of the past year, Aramco posted a 30% year-on-year increase in net income to US$21.7bn for the first quarter of 2021 and declared a dividend of US$18.8bn 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, according to the company, which said its operational flexibility, financial agility and the resilience of its employees also contributed to the strong performance. Average total hydrocarbon production stood at 11.5mn bpd of oil equivalent in the first quarter of 2021, including 8.6mn bpd of crude oil. “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
T
12
oilreview.me
Issue 3 2021
well-positioned to meet the world’s growing energy needs as economies start to recover,” said Aramco president & CEO Amin H. Nasser. It has been an eventful year for the oil giant, with recent developments including the launch of the Dammam 7 supercomputer, the acquisition of a 70% stake in SABIC, another step in its transformation to become a major global petrochemicals player, and the Kingdom’s first blue ammonia shipment to Japan. “We made further progress towards our strategic objectives during the quarter and our portfolio optimisation programme continues to
We made further progress towards our strategic objectives during the quarter.”
identify value creation opportunities, such as the recent announcement of our landmark US$12.4bn pipeline infrastructure deal,” said Nasser. Under the deal, Aramco sold a 49% equity interest in Aramco Oil Pipelines Company, a newly-formed Aramco subsidiary, to a consortium of investors led by EIG Global Energy Partners. The cash will be used for ‘general corporate purposes’. Further such initiatives to monetise the company’s assets can be expected, following the creation last year of a division focused on portfolio optimisation.There are even rumours that the company could be looking to bring external investors into some of its oil and gas assets, or possibly selling off stakes in its operations. In common with its counterparts, Aramco has been forced to cut its cloth, seeing net profit in 2020 dive by 44% as a result of the impact of the pandemic and plunging oil prices. Expenditure for 2021 is set at US$35bn, significantly lower than the planned US$40-45bn, although the impact has been mitigated to a certain extent by increased capital and operational efficiencies. The company has also delayed some projects and suspended drilling in some areas. The Baker Hughes rig count indicates that there were only 60 active rigs in March 2021, compared
