Aramco the Saudi state oil giant reported a breathtaking 288% increase in net income. The Saudi company transformed its net income to $25.5 billion for the second quarter with a dividend of $18.8 billion. The increase followed the worldwide demand as the international economy starts to gain back momentum. 

Last year, Aramco’s net income for the second quarter was as small as $6.6 billion. The massive plunge back then was due to the Covid-19 outbreak across the globe. However, the $25.5 billion have beaten the expectations. Analysts predicted a median net income of $24.7 for this year’s second quarter. 

 “Our second-quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum,” Aramco president and CEO Amin Nasser said in a company statement published Sunday.

In the same statement, Aramco said that this year’s first-half net income was $47.2 billion which is two times higher than the 2020s $23.2 billion in the first half of the year. The increase is 103% in 12 months period. According to the Saudi oil giant, the easing of Covid-19 restrictions around the world has immensely contributed to the increase alongside the stimulus measures and vaccine rollouts with the activity in key markets accelerating.  

 “While there is still some uncertainty around the challenges posed by Covid-19 variants, we have shown that we can adapt swiftly and effectively to changing market conditions,” Nasser said.

Aramco shares Its dividend plans

According to Aramco, the free cash flow had hit $22.6 billion in the second quarter. On the other hand Aramco had hit $40.9 billion for the first six months of 2021. This in comparison to $6.1 billion and $21.1 billion respectively for the same periods of 2020 is a huge increase. 

 “A dividend increase is needed to stay competitive,” BofA analysts said in a research note ahead of the earnings release. “Higher oil prices and OPEC+ driven production increases should support a significant free cash flow increase over the next couple of years,” it added.

 “We are looking at our sustainability program,” Nasser told CNBC on Sunday’s earnings call. “A lot of the elements of our capital program that we are currently considering have to do with crude-to-chemical and hydrogen, and all of these programs represent great opportunities, especially with the Shareek program,” he added.