6 hours ago
There are growing calls for an unexpected tax on the profits of oil giants as the cost of living rises
The Saudi oil company Aramco broke a new record with profits of 48.4 billion dollars for the second quarter of 2022.
The increase was 90 percent year-on-year and represented the biggest profit for the world’s largest energy exporter since it went public three years ago.
The Russian invasion of Ukraine led to a sharp rise in oil and gas prices.
Russia is one of the world’s largest oil and gas exporters, but Western countries have pledged to reduce their dependence on Moscow to meet their energy needs.
According to Bloomberg, the Saudi oil giant’s profits represent “the largest quarterly profit rate of any publicly listed company.”
In addition to the record earnings, state-owned Aramco announced that it would keep its dividend unchanged at $18.8 billion for the third quarter.
The company said it will continue to expand to meet demand.
“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that continued investment in our industry is essential to help ensure that markets continue to be well supplied and facilitate an orderly transition of energy,” Aramco President and CEO Amin Nasser said. .
“In fact, we expect oil demand to continue to rise for the rest of the current decade, despite downward or adverse economic pressures on the short-term global outlook,” he added.
Oil prices were on the rise before the Russia-Ukrainian war as economies began to recover from the Corona pandemic and demand exceeded supply.
The world’s largest oil producers, including ExxonMobil, Chevron and BP, have posted huge profits this year, leading to growing calls for governments to impose an unexpected tax amid an alarming rise in the cost of living.
In June, US President Joe Biden said Exxon had made “enormous fortunes”.