DUBAI: Aramco announced on Tuesday that its net income in the second quarter increased by 288 percent compared to the same quarter of 2020 to $25.5 billion.
The company said in its financial results for the second quarter that its net income for the first half of the year was $47.2 billion, representing a 103 percent increase over the same period in 2020.
The Q1 dividend of $18.8 billion was paid in the second quarter and Q2 dividend of the same amount will be paid in the third quarter.
The results were primarily driven by higher oil prices and a recovery in worldwide demand, supported by the global easing of COVID-19 restrictions, vaccination campaigns, stimulus measures and accelerating activity in key markets, Aramco said.
Free cash flow was $22.6 billion in the second quarter and $40.9 billion for the first half of 2021, compared to $6.1 billion and $21.1 billion, respectively, for the same periods in 2020.
The gearing ratio was 19.4 percent on June 30, compared with 23% on December 31, 2020. The decrease was primarily due to higher cash and cash equivalents on June 30 2021, mainly driven by stronger operating cash flows and cash proceeds in connection with Aramco’s stabilized crude oil pipelines transaction, the statement added.
Capital expenditure was $7.5 billion in the second quarter and $15.7 billion for the first half of 2021, representing an increase of 20 percent and 15 percent, respectively, compared with the same periods in 2020.