Saudi Aramco has posted its strongest quarterly results since going public, with net income of $39.5 billion and free cash flow of $30.6bn.
It will keep its dividend unchanged from the previous quarter, though, with a plan to pay out $18.8bn. Gearing fell to 8%, down from 14.2% at the end of December.
Aramco remains “focused on helping meet the world’s demand for energy that is reliable, affordable and increasingly sustainable,” said president and CEO Amin Nasser.
“Energy security is vital and we are investing for the long term, expanding our oil and gas production capacity to meet anticipated demand growth and creating long-term shareholder value by capitalising on our low lifting cost, low upstream carbon intensity, and integrated downstream business.”
Cutting debt was driven by stronger cash flows and the proceeds of its gas pipeline deal. The company made a pre-payment to the Public Investment Fund (PIF), Saudi’s sovereign wealth fund. This reduced the amount of promissory notes by $8bn, which it had originally drawn to support its acquisition of Sabic.
Capital expenditure in the quarter was $7.6bn. It produced 13 million barrels of oil equivalent per day.
It aims to bring on the Hawiyah and Haradh compression projects by the end of the year. Then, in 2023, it plans to start up the Hawiyah gas plant expansion.
During the quarter, Aramco also signed a memorandum of understanding (MoU) to become an inaugural member of the regional Voluntary Carbon Market (VCM). PIF launched this plan in March, with the aim of launching a carbon trade in 2023.