Oil giant Aramco reports record first quarter as oil prices soar

A new quarterly earnings record has been set by oil giant Aramco, which reported a more than 80% jump in net profit Sunday.

Net income for the first three months of the year was $39.5 billion, up from $21.7 billion in the same period last year. Net income was expected to be $38 billion dollars.

Big Oil is benefiting from a sharp rise in oil and gas prices, which is why the record quarter for Aramco came about. Higher crude oil prices, rising volumes sold, and improved downstream margins were some of the factors that led to the higher earnings of Aramco.

During the first quarter, our strategic downstream expansion progressed further in both Asia and Europe, and we continue to develop opportunities that complement our growth objectives, according to the earnings release Sunday.

Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world's demand for energy that is reliable, affordable and increasingly sustainable.

Last week, Aramco became the world's most valuable company, with a market cap of around $2.43 trillion. The market caps looked the same on Sunday.

The stock of the company is up over 15%. In March, the oil giant reported that its full-year profit last year more than doubled due to the ongoing rise in oil prices, driven higher by Russia's invasion of Ukraine, looming European Union sanctions on Russian oil and the prospect of tighter supply.

The oil and gas industry has benefited from a more than 45% increase in prices since the start of the year, which is reflected in the Aramco results. Despite write-offs for exiting operations in Russia following the invasion of Ukraine, earnings from Aramco's global peers have hit their highest level in years.

The reward for investors is a result of Aramco. The company said it would use $4 billion dollars in retained earnings to distribute bonus shares to shareholders. Free cash flow increased by 32% to $30.6 billion dollars, and the company kept its enormous dividend stable at $18.6 billion dollars.