Aramco Q3 2022 results: Profits up to SR159.12 billion by 39.5%

Saudi Arabian Oil Company “Saudi Aramco” net profit after zakat and tax rose to SR159.12 billion during the third quarter, compared to SR114 billion during the same quarter of the previous year, at a rate of 39.5%.

The net income for the third quarter of 2022 was SAR 159.12 billion ($42.43 billion), compared to SAR 114.09 billion ($30.43 billion) for the same quarter in 2021. The increase in net income was primarily driven by higher crude oil prices and volumes sold. This was partially offset by increased production royalties largely attributable to higher average effective royalty rate resulting from stronger crude oil prices, and higher sales volume.

The net income for the third quarter of 2022 was SAR 159.12 billion ($42.43 billion), compared to SAR 181.64 billion ($48.44 billion) for the second quarter in 2022. The decrease in net income was primarily driven by lower crude oil prices and a decline in refining and chemicals margins. This was partly offset by higher volumes sold, and a decrease in production royalties mainly attributable to lower crude oil prices.

The net income for the first nine months of 2022 was SAR 488.78 billion ($130.34 billion), compared to SAR 291.00 billion ($77.60 billion) for the same period in 2021. The increase predominantly reflects the impact of stronger crude oil prices and volumes sold, and higher refining margins. This was partially offset by an increase in production royalties mainly resulting from higher average effective royalty rate driven by stronger crude oil prices, and higher sales volume.

Given the nature of Saudi Aramco’s business in prospecting, exploring, drilling and extracting hydrocarbon substances (Upstream), Saudi Aramco’s consolidated statement of income does not include gross profit.

-Other income related to sales was SAR 70.22 billion for the third quarter of 2022 (Q3 2021: SAR 46.29 billion, Q2 2022: SAR 86.31 billion). As a result, revenue and other income related to sales amounted to SAR 613.94 billion for the third quarter of 2022 (Q3 2021: SAR 405.38 billion, Q2 2022: SAR 648.37 billion).

-Other income related to sales was SAR 206.42 billion for the first nine months of 2022 (YTD 2021: SAR 111.97 billion). As a result, revenue and other income related to sales amounted to SAR 1,779.21 billion for the first nine months of 2022 (YTD 2021: SAR 1,055.49 billion).