Aramco announces third quarter 2021 results
The Saudi Arabian Oil Company today announced its third quarter financial results, recording a 158% year-on-year (YoY) increase in net income to $30.4 billion and declaring a dividend of $18.8 billion to be paid in the fourth quarter. The increase in net income was primarily the result of higher crude oil prices and volumes sold and stronger refining and chemicals margins in Q3, which were underpinned by rebounding global energy demand and increased economic activity in key markets.
Free cash flow* was $28.7 billion in the third quarter, compared to $12.4 billion for the same period in 2020, and the company again delivered for its shareholders by declaring a dividend of $18.8 billion for Q3.
ROACE*, calculated on a 12-month rolling basis, was 20.6% for the period ending September 30, 2021, compared to 14.8% for the same period in 2020, principally reflecting an increase in net income.
The Company’s gearing ratio* was 17.2% on September 30, 2021, when compared with 23% on December 31, 2020. The decrease was mainly due to higher cash and cash equivalents, driven by higher operating cash flows resulting from stronger crude oil prices, improved refining and chemicals margins, the consolidation of SABIC’s results and cash proceeds in relation to Aramco’s stabilized crude oil pipelines transaction that completed in the second quarter of 2021.
Aramco continues to invest for the future with capital expenditure of $7.6 billion in the third quarter, representing a 19% increase, compared with the same period in 2020. This increase was primarily due to ongoing crude oil increment and other development projects. Aramco maintains a flexible approach to capital allocation and continues to expect 2021 capital expenditure to be approximately $35 billion.
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