Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019.
Maxim Shemetov | Reuters
DUBAI, United Arab Emirates — Saudi Arabia’s oil giant Aramco posted a stunning 158% increase in third quarter net income to $30.4 billion dollars, as the world’s largest oil companies continue to benefit from the reopening of the global economy and soaring oil and gas prices.
The result beat expectations, with analysts expecting a median net income of $29.1 billion for the quarter. Aramco reported net income of $11.8 billion in the third quarter of 2020.
“Our exceptional third quarter performance was a result of increased economic activity in key markets and a rebound in energy demand,” Aramco President and CEO Amin Nasser said on Sunday.
“Some headwinds still exist for the global economy, partly due to supply chain bottlenecks, but we are optimistic that energy demand will remain healthy for the foreseeable future,” Nasser added.
Aramco said the increase in net income was the result of higher crude oil prices and volumes sold, and stronger refining and chemicals margins in the quarter, as the company benefits from rebounding global energy demand and increased economic activity in key markets.
Market windfall
WTI crude oil has soared above $85 USD in recent weeks, a level not seen since 2014, as the market shifts focus from demand recovery to supply scarcity. Natural gas prices are up around 130 percent this year, meaning the full extent of the global energy crisis is more likely to be felt in the fourth quarter results.
Aramco declared a significant dividend of $18.8 billion to be paid in the fourth quarter. The payout can be covered by a jump in free cash flow to $28.7 billion in the third quarter, up from $12.4 billion for the same period in 2020. Gearing, a measure of the company’s debt position, also improved to 17.2% from 23% due to higher oil prices and stronger cash flows.
Aramco also said it would “invest for the future” with capital expenditure of $7.6 billion in the third quarter, representing a 19% increase, compared with the same period in 2020. Aramco said it expected 2021 capital expenditure to be approximately $35 billion.
The results confirm a bumper quarter for “Big Oil,” a term used to refer to the world’s largest oil and gas companies. U.S. oil majors ExxonMobil and Chevron also benefited from rising prices, reporting profit that soared to multiyear highs in the quarter. Royal Dutch Shell reported record cash flow, while TotalEnergies also saw a sharp rise in performance.
Profit and pressure
The strong numbers come as the sector faces renewed scrutiny from activists and cynicism over its climate ambitions. Companies, including Aramco and the UAE oil giant Adnoc, have launched climate initiatives just days ahead of the COP26 climate summit, while simultaneously planning to invest to increase oil production in the coming years.
“I think most people would agree that climate change is one of the biggest challenges facing society,” Aramco Chairman Yasir Al-Rumayyan told CNBC via email.
“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 aims to achieve net zero emissions from its wholly-owned operations by 2050, and simultaneously plans to increase oil output to 13 million barrels a day by 2037. A separate pledge from Saudi Arabia to invest almost $190bn to achieve net zero emissions by 2060 received both praise and skepticism from oil industry observers.
“The reality is that the energy transition will be long and complex, and therefore oil and gas will continue to play a key role,” Al-Rumayyan said, while also offering commentary on the recent energy crisis and its link to the energy transition.
“Recent energy disruptions around the world are evidence of the need for a stable and inclusive energy transition,” Al-Rumayyan said. “We need a transition that provides a reliable, affordable and low-cost supply of energy that leaves no one behind,” he added.
Aramco said it would disclose further details on how it plans to navigate the energy transition and achieve its net zero strategy in its Sustainability Report due out in the second quarter of 2022.
“We fully recognize that we have a long way to go, and that the journey will not be easy,” Al-Rumayyan said. “We are confident that we can meet the challenges and provide the leadership, expertise, and tools to support global progress towards a low-emissions future.”
A view of offshore oil and gas platform Esther in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | Getty Images
President-Elect Donald Trump said Tuesday that he will reverse President Joe Biden‘s ban on offshore drilling along most of the U.S. coastline as soon as he takes office.
“I’m going to have it revoked on day one,” Trump said at a news conference, though he indicated that reversing the ban might require litigation in court.
Biden announced Monday that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. The president issued the ban through a provision of the 1953 Outer Continental Shelf Lands Act.
An order by Trump attempting to reverse the ban will likely end up in court and could ultimately be struck down.
During his first term, Trump tried to issue an executive order to reverse President Barack Obama’s use of the law to protect waters in the Arctic and Atlantic from offshore drilling. A federal court ultimately ruled that Trump’s order was not lawful and reversing the ban would require an act of Congress.
The Republican Party has a majority in both chambers of the new Congress.
Chinese EV Automaker ZEEKR is marking its third consecutive presence on the display floors of CES. During this year’s event, ZEEKR began teasing at least three new models scheduled to launch in 2025, some of which will feature an NVIDIA DRIVE Thor-based smart driver domain controller. In addition to those codenamed models, ZEEKR is also planning to launch another NVIDIA DRIVE Thor-equipped EV called “RT” in the US to be used by robotaxi developer Waymo.
ZEEKR wasted no time touting its latest EV and autonomous driving technology at CES 2025, which kicked off in Las Vegas earlier this week. As noted above, 2025 marks ZEEKR’s third consecutive participation in the annual tech event, which is notable considering the company was founded less than four years ago.
During last year’s event, ZEEKR showcased its 007, which had just launched in China days before. It offers a 540-mile range and a starting price below $30,000. At CES 2023, ZEEKR made its public debut in the US, showcasing its flagship 001 shooting brake and a purpose-built EV designed for robotaxi network Waymo, which we saw up close later that fall.
The Waymo BEV has become known as the ZEEKR RT, which is mentioned alongside several exciting announcements that the Chinese automaker teased last month.
ZEEKR shares plans for new models, plus Waymo BEVs
ZEEKR kicked off CES 2025 today with news of a new domain controller built using NVIDIA’s DRIVE Thor next-generation centralized computer. NVIDIA unveiled DRIVE Thor in the fall of 2022, announcing ZEEKR as its first customer and initial production of vehicles featuring the technology planned for early 2025.
As such, ZEEKR is hailing itself as the first OEM to integrate NVIDIA’s next-gen system-on-chip (SoC) into a domain controller to handle a wide range of smart driving, autonomous scenarios, and parking functions. Per NVIDIA during the DRIVE Thor debut, the computer “achieves up to 2,000 teraflops of performance, unifies intelligent functions — including automated and assisted driving, parking, driver and occupant monitoring, digital instrument cluster, in-vehicle infotainment (IVI) and rear-seat entertainment — into a single architecture for greater efficiency and lower overall system cost.”
As NVIDIA’s first DRIVE Thor customer, ZEEKR said its domain controller will soon be mass-produced and integrated into a new large SUV model to be launched this year. That SUV will be one of three new BEVs ZEEKR plans to launch in 2025. According to ZEEKR CEO Andy An, those vehicles have been internally codenamed “EX,” “DX,” and “CC.”
In addition to those passenger EVs in the works, ZEEKR shared that its RT van, based on the MIX and explicitly designed as a robotaxi for Waymo, is undergoing real-world testing and is expected to arrive as the world-first mass-produced purpose-built vehicle for autonomous rides.
ZEEKR RT deliveries to Waymo are expected later this year for further testing ahead of a future public robotaxi network launch. If that happens, ZEEKR could become the first Chinese EV brand to enter the US market, although it’s a bit of a loophole.
ZEEKR’s 009 MPV, MIX van, and 001 FR shooting brake are on display at CES at booth #5640 in the West Hall of the Las Vegas Convention Center. Go check them out.
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How about a new EV with your next Amazon order? As the first brand to sell vehicles on Amazon, Hyundai says, “You’re gonna need a bigger cart.” Hyundai is now selling cars directly on Amazon, including popular EVs like the IONIQ 5. Here’s how you can snag one.
How can you buy Hyundai EVs directly on Amazon?
Buying a new Hyundai is now as easy as adding it to your next Amazon order. However, you might need a bigger cart.
Amazon revealed plans to expand into vehicle sales in 2023, starting with Hyundai. After making it official at the 2023 LA Auto Show, Hyundai began selling vehicles on the platform just before the end of 2024.
Buying a new vehicle on Amazon Auto is as easy as buying a new laptop or outfit. You can browse through available Hyundai vehicles near you, secure financing, checkout, and schedule a pick-up time directly using Amazon’s trusted platform.
You can easily find the vehicle you’re looking for with the option to sort by model, trim, color, features, and more. After you find it, you can secure financing, sign the paperwork electronically, and complete the process in just a few clicks.
The best part is the haggle-free pricing. What you see at checkout is the price you will pay. Once finalized, you can pick the day and time to pick up your new ride at a local dealership.
If you have a trade-in, you can get an instant quote by answering a few questions and uploading images of the car. Then, you can apply the credit toward your new vehicle on Amazon Autos. When you go to pick up your new vehicle, the dealership will be ready for it.
Hyundai plans to expand the program by adding more dealers throughout the year and offering more leasing and financing options. On the Amazon Auto website, you can view Hyundai vehicles at participating dealers near you.
You can already find top-selling Hyundai EVs on Amazon Auto, including the updated 2025 IONIQ 5 and IONIQ 6. With new models, like the three-row IONIQ 9 rolling out, expect to see more EVs available soon.
The new IONIQ 5 starts at $42,500. With a bigger (84 kWh) battery, the updated model has a range of 318 miles, up from 303 miles in the outgoing IONIQ 5. It also has an NACS port, so it can be charged at Tesla Superchargers.
After kicking off production at its new EV plant in Georgia late last year, Hyundai’s electric vehicles now qualify for the $7,500 EV tax credit for the first time.
For those of you who don’t have access to the program yet, we’ve got you covered. With the new 2025 models rolling out, Hyundai is offering 2024 IONIQ 5 SUVs for next to nothing while they are still in stock. You can use our links below to find the best deals on Hyundai EV models in your area.
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