Saudi Aramco Posts Record Quarterly Profit on Surging Oil Prices
Wall Street JournalOct 19, 2022
Saudi Aramco: Oil Giant Makes Record $48.4B Quarterly Profit
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Image copyright: Reuters [via The National]
The Facts
The Saudi Arabian Oil Co. posted the biggest quarterly adjusted profit of any globally listed company, recording on Sun. a net income increase of $48.4B in Q2, up from $25.5B a year earlier.
Besides large increases in oil prices since the beginning of the year, earnings jumped with help from volume sold and refining margins.
The Spin
Narrative A
As countries across the world suffer from inflation and high gas prices, oil companies, such as Saudi Aramco, are making an outrageous windfall. Russia's war in Ukraine was a blessing in disguise for Saudi Arabia, which has failed to diversify its economy and continues to rely on profits from the oil and gas sector worldwide for its income.
Narrative B
Though some said that the world would no longer rely on oil and gas, the last six months have proven otherwise. The world isn't ready for a complete transition to renewable energy yet. Oil-producing nations must continue to address the world's crucial thirst for energy and be fairly compensated for their efforts.
