Energy giant Saudi Arabian Oil Co (Aramco) yesterday said that its first-quarter profits jumped 30 percent from a year earlier on the back of higher oil prices.
“Aramco’s net income was US$21.7 billion for the first quarter, a 30 percent increase from US$16.7 billion in Q1 2020, primarily driven by a stronger oil market, and higher refining and chemicals margins, partly offset by lower production,” the company said in a statement.
The news follows consecutive falls in quarterly profits last year owing to low oil prices and production cuts, as the COVID-19 pandemic sapped global energy demand.
“The momentum provided by the global economic recovery has strengthened energy markets, and Aramco’s operational flexibility, financial agility and the resilience of our employees have contributed to a strong first-quarter performance,” Aramco chief executive officer Amin Nasser said.
Saudi Arabia is seeking to monetize its energy assets to generate revenue for an ambitious effort to diversify its oil-reliant economy.
Last month, Aramco said that it had struck a US$12.4 billion deal to sell a minority stake in a newly formed oil pipeline business to a consortium led by US-based EIG Global Energy Partners.
In late April, Saudi Arabian Crown Prince Mohammad bin Salman said that Saudi Arabia, the top crude exporter, was in talks to sell 1 percent of Aramco to an unnamed foreign energy firm.
Aramco is exploring new revenue streams as it faces pressure to maintain hefty dividend payments to the Saudi Arabian government, its biggest shareholder, since it began disclosing earnings in 2019.
Aramco previously sold a sliver of its shares on Tadawul, the Saudi Arabian stock exchange, in December 2019, generating US$29.4 billion in the world’s biggest initial public offering.
The energy giant could announce another offering of shares to international investors within the next year or two, the prince said.
UNWANTED ATTENTION: In the past two months, the automaker has made headlines, with a Chinese military ban of its vehicles and a protest at an expo Electric vehicle maker Tesla Inc, facing scrutiny in China over safety and customer service complaints, is boosting its engagement with regulators and beefing up its government relations team, industry sources said. Tesla’s change of strategy leading to more behind-the-scenes interaction with policymakers in Beijing compared with relatively little previously shows the seriousness with which the US automaker views the setbacks in its second-biggest market. TALKING SHOP It also comes at a time when China is trying to regulate large and powerful private companies, especially in the technology sector, on concerns about their market dominance. As they do elsewhere, regulators in China, the world’s biggest
Dell Technologies Inc has agreed to sell its Boomi cloud business to private equity firms Francisco Partners and TPG in a cash deal valued at US$4 billion, as part of efforts by chief executive officer Michael Dell to trim down the PC maker. The deal is expected to close by the end of this year, the companies said in a statement on Sunday without providing additional details of the terms. Dow Jones had earlier reported that the companies were near a deal. Boomi specializes in integrating different cloud platforms for companies and has more than 15,000 customers. Dell agreed to acquire the company for
Intel Corp wants 8 billion euros (US$9.7 billion) in public subsidies toward building a semiconductor factory in Europe, chief executive officer Pat Gelsinger was cited as saying on Friday, as the region seeks to reduce its reliance on imports amid a shortage of supplies. The pitch is the first time that Gelsinger has publicly put a figure on how much state aid he would want, as Intel campaigns to take on Asian rivals in contract manufacturing. “What we’re asking from both the US and the European governments is to make it competitive for us to do it here, compared to in Asia,”
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that it is considering further capacity expansion as customers are requesting more capacity due to rising end-market demand and persistent supply constraints. The Hsinchu-based company said that emerging technologies and applications from 5G, artificial intelligence and electric vehicles are driving semiconductor demand. The semiconductor industry has a positive outlook for this year and beyond, with shipments of all diameters of wafers to increase through 2023, GlobalWafers said. “We have received requests for expansion from many strategic partners. We are now in discussions with customers,” company chairwoman Doris Hsu (徐秀蘭) told a