(Adds comments on oil demand, production)
By Hadeel Al Sayegh, Marwa Rashad and Saeed Azhar
DUBAI, Aug 8 (Reuters) - Saudi Arabian state oil producer
Aramco reported a near four-fold rise in
second-quarter net profit on Sunday, beating expectations and
boosted by higher oil prices and a recovery in oil demand.
Aramco said its results were supported by the global easing
of COVID-19 restrictions, vaccination campaigns, stimulus
measures and accelerating economic activity in key markets.
Aramco joins other oil majors who have reported strong
results in recent weeks.
Exxon Mobil last month said its net income for the
second quarter came in at $4.69 billion, or $1.10 per share,
compared with a loss of $1.08 billion, or 26 cents per share, a
year ago.
Royal Dutch Shell reported its highest quarterly
profit in more than two years, with adjusted earnings at $5.53
billion, compared with earnings of $638 million a year earlier.
Oil prices, boosted by output cuts made by the Organization
of the Petroleum Exporting Countries and their allies, a group
known as OPEC+, closed at $70.70 a barrel on Friday and has
gained over 35% since the start of the year.
"Our second quarter results reflect a strong rebound in
worldwide energy demand and we are heading into the second half
of 2021 more resilient and more flexible, as the global recovery
gains momentum," Aramco CEO Amin Nasser said in a statement.
Aramco's net profit rose to 95.47 billion riyals ($25.46
billion) for the quarter to June 30 from 24.62 billion riyals a
year earlier.
Analysts had expected a net profit of $23.2 billion,
according to the mean estimate from five analysts.
Aramco's CEO told an earnings call that global oil demand
was expected to hit 99 million barrels a day by the end of the
year and 100 million barrels next year,
Aramco is still working to increase its own capacity to 13
million barrels day, Nasser said, reiterating a plan announced
last year.
MAINTAINS DIVIDEND
It declared a dividend of $18.8 billion in the second
quarter, in line with its own target, which will be paid in the
third quarter.
Credit Suisse analysts said late last month they expected
Aramco to declare a special dividend because of higher oil
prices that had helped boost its free cash flow.
Yousef Husseini, equity research analyst at EFG Hermes, said
Aramco may be keeping the extra cash for taking part in the new
state-backed Shareek (Partner) initiative, to partner with
private sector investments.
"I think the reason they maintained [the dividend] and our
rationale was that they are retaining money to invest in future
projects and particularly the "Shareek" programme," he said.
Aramco's capital expenditure was $7.5 billion in the second
quarter, an increase of 20% from a year earlier.
A consortium including Washington DC-based EIG Global Energy
Partners in June closed a deal to buy 49% of Aramco's pipelines
business for $12.4 billion.
($1 = 3.7501 riyals)
(Reporting by Hadeel Al Sayegh, Marwa Rashad and Saeed Azhar,
additional reporting by Rania El Gamal.
Editing by Raissa Kasolowsky and David Evans)
