DUBAI, United Arab Emirates — Saudi Arabia’s oil giant Aramco has posted a 158% increase in third quarter net income to $30.4 billion, as the world’s largest oil companies continue to benefit from the reopening of the global economy and soaring oil and gas prices.

Analysts had expected the median quarterly net income to be $29.1 billion. However, this result exceeded all expectations. Aramco reported net income of $11.8 billion in the third quarter of 2020.

Amin Nasser (President and CEO, Aramco) stated that Aramco’s third quarter record was due to an improvement in economic activity in key market areas and increased energy demand.

Nasser stated that “some headwinds” still remain for the global economic, due in part to supply chain bottlenecks. However, he said, “We are optimistic that the energy demand will stay healthy for theforeseeable future.”

Aramco explained that Aramco’s net income increased due to higher crude oil price and volume sales, stronger chemical margins and rebounding global energy demand.

WTI crude oil prices have soared to above $85 over the past weeks. This is a new record since 2014. The full impact of natural gas price increases is evident at 130%. global energy crisisa greater likelihood to be felt during the fourth quarter results.

Aramco has declared an important dividend of $18.8billion to be paid over the fourth quarter. This payout is covered by an increase in free cash flow of $28.7billion in the third quarter. That’s up from $12.4billion for the same period in 2020. The company’s gearing, which is a measure the company’s overall debt, rose from 23% to 17.2% due to lower oil prices and better cash flows.

Aramco stated that it will “invest for future”, with $7.6 Billion in capital expenditure in the third quarter. This represents a 19% rise compared to the same time in 2020. Aramco predicted that 2021 capital spending would be around $35 billion.

These results show a record quarter for Big Oil, a term that used to be associated with the largest oil companies in the world. U.S. Oil Majors ExxonMobil ChevronProfits rose to new highs due to rising prices. Royal Dutch ShellRecord cash flow reported while TotalEnergiesPerformance also showed a dramatic rise.

The sector is facing some tough challenges, hence the strong numbers renewed scrutiny from activistsAramco and Adnoc, both UAE oil giants, expressed cynicism about their climate ambitions. Aramco, Adnoc in the UAE, and other companies have already launched climate initiatives days before the United Nations. COP26Climate summit while simultaneously planning for investments increase oil productionIn the future.

“CNBC’s Yasir al-Rumayyan, chairman of Aramco, stated via email that “I believe most people would agree climate change is one the greatest challenges facing society.”

“We need a transition that does not ignore that petrochemicals are essential building blocks to modern life — including the smartphones we all use and the products we rely on to fight COVID,” he added.

Aramco has set a goal to eliminate net carbon emissions from all its operations by 2050 and plans to simultaneously increase the oil production by 13 million barrels per day until 2037. Saudi Arabia has also pledged to spend almost $190 billion in order to reach its goal. net zero emissions by 2060Oil industry observers were both positive and skeptical about the work.

Al-Rumayyan stated, “The truth is that the transition to energy will take a long time and will be complex. Therefore oil and gas will still play a crucial role.” He also offered commentary on the recent energy crisisIts link to energy transition.

Al-Rumayyan explained that “recent energy disruptions all over the globe are proof of the need to have a stable, inclusive energy transition.” Al-Rumayyan said that a stable, low-cost and reliable supply of energy is essential to ensure that everyone benefits.

Aramco indicated that further details would be provided by the company on how they plan to transition into the new energy market and reach net zero. This information will be available in Aramco’s Sustainability Report which is due for publication in the second quarter in 2022.

Al-Rumayyan stated that “We are fully aware that there is a lot of work ahead and that it will be difficult.” “We believe we are capable of meeting the challenges and providing the leadership, expertise, tools, and support for global progress towards low emissions.