Categories
Business

Saudi Aramco profits quadruple as oil giant reveals plans to increase production Business News

The world’s largest oil company, Saudi Aramco, has announced plans to increase capacity as it revealed profits have nearly quadrupled.

The state-backed oil producer said its net income jumped to $ 25.5 billion (£ 18.4 billion) in the second quarter of the year, up 288% from the same period a year ago.

Saudi Aramco is moving forward with $ 35 billion in investment this year and has said it will pay out $ 18.5 billion (£ 13.3 billion) in dividends, almost all of which will go to the government Saudi Arabian, who owns 98% of the company’s shares.

Amin Nasser, CEO of Aramco, said he was “extremely positive for the second half of 2021 and beyond”. Aramco plans to increase its capacity by one million barrels of oil per day, he said.

Fossil fuel companies are benefiting from rising energy prices as restrictions are lifted and economic activity returns to pre-pandemic levels. Oil is now trading at $ 70 a barrel after plunging below $ 30 in the first round of lockdowns last year.

Prices have been inflated by the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreeing to cut oil production.

This means higher prices at petrol pumps for UK drivers, with the RAC reporting fuel costs have reached an eight-year high.

Exxon Mobil and Royal Dutch Shell have both reported higher profits in recent weeks. Exxon posted a revenue increase of $ 4.7 billion in the second quarter, offset by a loss of more than $ 1 billion. Shell posted its highest quarterly profit in over two years.

News of the oil majors’ renaissance comes as record-breaking wildfires burn in Greece and the United States, while the Intergovernmental Panel on Climate Change (IPCC) has released an alarming report indicating that the climate crisis is now a “code red” for humanity.

The IPCC has warned that major changes in the global climate are both inevitable and irreversible, with temperatures likely to rise more than 1.5 ° C above pre-industrial levels over the next two decades, reversing l target set by the 2015 Paris Agreement.

The group of 234 scientists said there was “unequivocal” evidence that humans are to blame for the rapid rise in land and ocean temperatures – the IPCC’s strongest statement to date after its latest assessment report in 2013 said people were the “dominant cause” of global warming. .

British Prime Minister Boris Johnson said the report’s findings made “sobering reading”.

“It is clear that the next decade is going to be crucial in securing the future of our planet,” he said in a statement. “We know what needs to be done to limit global warming – make coal history and switch to clean energy sources, protect nature and provide climate finance to countries on the front lines. “

“The IPCC report underlines the extreme urgency of this moment. The world must come together before the ability to limit global warming to 1.5 ° C is out of reach, ”said the President’s special climate envoy John Kerry.

More about this article: Read More
Source: www.independent.co.uk
This notice was published: 2021-08-09 17:07:41

Leave a Reply

Your email address will not be published. Required fields are marked *