The good news? Business is booming for oil companies. The bad news? We’re all paying more to fill up our tanks.
Saudi Aramco released its third quarter earnings yesterday, with gross revenues coming in at $95.8b for a net profit of $30.4b. $18.8b of this profit will be paid out as a quarterly dividend to its number one shareholder, the Saudi government.
According to president and CEO Amin H. Nasser, Saudi Aramco’s “exceptional third quarter performance was a result of increased economic activity in key markets and a rebound in energy demand.” Nasser also pointed out that the company still faces headwinds due to supply chain bottlenecks, though he feels confident that global energy demand will remain strong for the foreseeable future.
Aramco isn’t the only energy company enjoying the boom in oil prices. France’s Total SE (TTE) beat its Q3 earnings expectations, posting revenues of $54.72b
why it matters
Fuel prices are higher than they've been in a long time for global consumers. Motorists in the UAE are now paying around AED 2.5 per liter, while gas prices in San Francisco recently hit a historic high of $4.84 per gallon.