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Higher oil prices lift Aramco quarterly profit to $32.5bn despite attacks
Saudi Aramco reported a sharp rise in quarterly profit despite attacks on energy facilities and reduced output, as higher oil prices helped offset the disruption. The results highlight how conflict and uncertainty are affecting global energy supplies and prices, while also lifting earnings across the oil industry.
Aramco’s net profit was $32.5bn in the three months to September, up from $26.9bn a year earlier. Brent crude rose 2.2% to $107.15 a barrel after reported US strikes on Iran, having fallen 11% the previous day; before the war began on 28 February, it was about $72. Separately, Australia’s central bank raised its cash rate by 0.25 percentage points to 4.85%, an 18-year high and its fifth increase this year, but a close vote suggested hikes may be nearing a pause.
In short
- Aramco’s quarterly profit rose by more than a third.
- Brent climbed to $107.15 a barrel after reported strikes on Iran.
- Australia raised rates to 4.85%, but may be nearing a pause.
Explained simply
Aramco is Saudi Arabia’s state-owned oil company and one of the world’s largest oil producers. It sells crude oil and other energy products to customers around the world, so its earnings are closely tied to oil prices and the amount it can produce.
Oil prices can rise when conflict threatens production or transport, or when traders are uncertain about future supplies. Higher prices can increase oil companies’ revenues, while attacks or reduced output can limit how much they sell.
Changes in oil supply and prices matter beyond the energy industry because they can affect fuel costs, transport and the wider cost of living. Aramco’s results also offer a sign of how disruption in a major producing region can affect companies and energy markets globally.
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Originally published by The Guardian as “Saudi state oil company reports jump in profits despite attacks; Australian central bank lifts rates – business live”.