- Saudi Aramco posted a 39% jump in third-quarter profit to $42.4 billion in its earnings Tuesday.
- Higher oil prices driven by the Ukraine war and OPEC+ cuts have helped lift energy majors' profits.
Saudi Aramco posted a 39% leap in third-quarter profit Tuesday, thanks to a surge in crude oil prices that has driven bumper earnings for energy majors across the world.
The state-owned energy company, formally named Saudi Arabian Oil Co., $4 net income of $42.4 billion in the quarter, up from $30.4 billion in the same period last year. It also posted a record free cash flow of $45 billion, an increase from $28.7 billion the year prior.
"While global crude oil prices during this period were affected by continued economic uncertainty, our longterm view is that oil demand will continue to grow for the rest of the decade, given the world's need for more affordable and reliable energy," Saudi Aramco's president and CEO, Amin Nasser, said in a statement.
The OPEC+ group of oil producers — where Saudi Arabia is the de facto leader — $4 in early October in a bid to elevate prices.
Oil prices have risen nearly 20% this year, hitting highs above $120 a barrel in March on the fallout from Russia's war on Ukraine. The conflict has triggered Western sanctions against Moscow and curbed supply.
That has helped drive bumper earnings for global energy majors in recent months, which has led to calls for a windfall tax to help economies struggling with soaring power costs. US President Joe Biden $4 if they didn't invest their profit.
$4, the international benchmark, was 1.4% higher at $94.13 a barrel at last check Tuesday, while $4 was up 1.3% at $87.66 a barrel.
But oil prices have dropped over 6% in the last three months, dragged on by fears that a recession will weigh on demand, in particular as a result of China's faltering economy. The world's second-biggest economy has returned to imposing COVID-19 curbs including lockdowns, which hit businesses and so have $4.