By Hadeel Al Sayegh, Saeed Azhar and Alexander Cornwell
DUBAI (Reuters) - Saudi Arabian state oil producer Aramco on Tuesday beat analysts' forecasts with a 30% rise in first-quarter net profit and maintained its dividend payout, helped by strong oil prices.
Earnings by global energy companies such as Exxon Mobil have increased on the back of crude oil prices, which have risen by about a third this year, as a global oil surplus caused by the pandemic dwindles and fuel demand recovers.
"Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming," Aramco CEO Amin Nasser said in a statement.
"And while some headwinds still remain, we are well-positioned to meet the world's growing energy needs as economies start to recover."
Net income rose to $21.7 billion for the quarter to March 31 from $16.7 billion a year earlier.
Analysts had expected a net profit of $19.48 billion, according to the mean estimate from five analysts.
Aramco said the profit was primarily driven by a stronger oil market and higher refining and chemicals margins, partly offset by lower production.
The OPEC+ group, the alliance of the Organization of the Petroleum Exporting Countries and other leading oil producers including Russia, decided last month to stick to its previously approved action plan to ease output curbs further from May.
Aramco declared a dividend of $18.8 billion for the first quarter, to be paid in the second quarter, in line with company guidance of a $75 billion dividend for this year.
Aramco average total hydrocarbon production came in at 11.5 million barrels per day of oil equivalent in the first quarter of 2021, including 8.6 million barrels per day of crude oil.
(Reporting by Hadeel Al Sayegh, Alexander Cornwell, Saeed Azhar; editing by Jason Neely and Richard Pullin)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU