▪︎ majlis-news
Contact – Editorial Team:
Saudi Aramco announced today its financial results for the first quarter of 2021, revealing an increase of 30% year-on-year in net income, which amounted to 81.4 billion riyals ($ 21.7 billion), and dividends of 70.3 billion riyals (18.8 $ 1 billion) to be paid during the second quarter of this year. These results are attributed to the increase in oil prices and an improved economic environment in the first three months of 2021.
Commenting on the first quarter results, Saudi Aramco President and Chief Executive Officer, Eng. Amin bin Hassan Al-Nasser, said: “Praise be to God, our financial and operational results in the first quarter of 2021 showed very strong and distinct levels, and were a reflection of the improvement in the operating environment represented by the positive trends witnessed by many From regions of the world towards a gradual return to economic recovery and the balance of oil markets affected by the pandemic. The results also reflected the tireless commitment of the company’s employees to achieve excellent levels of efficiency, innovation and reliability. Indeed, Saudi Aramco has proven itself to be the preferred supplier to its customers. We continued to provide dividends to our shareholders.
“During the first quarter, we made, by the grace of God, further progress in our efforts to achieve our strategic goals. The Company’s Business Portfolio Improvement Program continues to identify opportunities for creating value, and this was evident in a pioneering infrastructure investment deal worth 46.5 billion riyals ($ 12.4 billion), the oil pipeline deal we announced early in the second quarter. On the other hand, the (partner) program in the Kingdom holds promising prospects for unleashing new opportunities in the local market that will, God willing, contribute to enhancing the reliability and sustainability of the company, and at the same time, it will have a positive impact on developing the capabilities of the private sector and the investment and economic environment in the Kingdom. .
He added: “Given the positive indicators of energy demand levels for 2021, I am optimistic about what the future holds, and although there are still some challenges, but with the start of the global economic recovery, Saudi Aramco will be ready to meet the world’s growing energy needs.”
Most important financial information:
Saudi Aramco’s net income reached 81.4 billion riyals ($ 21.7 billion) during the first quarter, an increase of 30% compared to 62.5 billion Saudi riyals ($ 16.7 billion) in the first quarter of 2020. This is due to the presence of a strong market for crude oil and the increase in Refining and chemicals profit margins, partially offset by lower production.
The company achieved cash flows from operating activities amounting to 99.3 billion Saudi riyals (26.5 billion US dollars), and free cash flows of 68.5 billion riyals (18.3 billion US dollars) during the first quarter of this year. While the volume of capital expenditures during the first quarter amounted to 30.8 billion riyals (8.2 billion US dollars).
The company’s debt ratio remained the same at 23% on March 31, 2021, compared to December 31, 2020.
The company announced dividends of 70.3 billion riyals (18.8 billion US dollars) during the first quarter of 2021, which will be paid during the second quarter.
The most important operational information:
Saudi Aramco has maintained the reliability of its exploration and production sector performance, with an average total hydrocarbon production of 11.5 million barrels of oil equivalent per day during the first quarter of 2021, of which 8.6 million barrels per day are crude oil.
The company also maintained its exceptional track record as a global energy supplier, with 100% reliability in delivering shipments to customers during the first quarter.
In January, Saudi Aramco entered into a partnership with Saudi Telecom Company, the leading company in telecommunications and technology services, to launch a new high-speed computer named “Dammam 7”, which is among the most powerful computers in the world, with a high-performance computing capacity of 55.4 petaflops, which provides opportunities. New in the field of exploration and development, and enhances the company’s capabilities in predicting the locations of new reserves through the use of the latest imaging technologies and deep learning through artificial intelligence. The launch of the computer “Dammam 7” is an advanced step within Saudi Aramco’s digital transformation strategy, which includes a set of advanced technologies that contribute to reshaping major operations, enhancing efficiency, and enabling the company’s leadership.
During the first quarter, Saudi Aramco and Dow Chemical Company, the two partners in Sadara Chemical Company, announced their success in restructuring the preferred debt financing of Sadara, which included an extension of the debt repayment period and a grace period for interest payments and guarantor guarantees, as well as the implementation of other agreements related to the purchase of feedstock. The rights to market the final products of Sadara.
Saudi Aramco was able to plant more than 500,000 trees during the first quarter, thus successfully completing its one million trees planting program, which aims to reduce desertification, sequester carbon, and enhance local biodiversity. The One Million Trees initiative aligns with the Sustainable Development Goals for biodiversity and sustainability of the United Nations, and is part of the company’s commitment to protecting the environment.
On the other hand, the company contributed to efforts to give vaccines for the emerging corona virus (Covid-19) during the first quarter of the year, to protect its workforce and social environment from the risks of infection. At the end of April 2021, more than 178,000 Saudi Aramco employees and retirees and their families had received vaccine doses, including 85% of the company’s employees. These vaccines have been scheduled either through the Saudi Aramco vaccination program, which is conducted at 16 sites in the company’s facilities throughout the Kingdom in cooperation with its medical partner, Johns Hopkins Aramco Healthcare, or through the government vaccination program.