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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.”

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UAW tells Stellantis workers to prepare for a fight, and vote for strike

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UAW tells Stellantis workers to prepare for a fight, and vote for strike

The UAW union’s Stellantis Council met yesterday to discuss the beleaguered carmaker’s “ongoing failure” to honor the agreement that ended the 2023 labor strike, and their latest union memo doesn’t pull many punches.

It’s not a great time to be Stellantis. Its dealers are suing leadership and threatening to oust the company’s controversial CEO, Carlos Tavares, as sales continue to crater in North America, it can’t move its new, high-profile electric Fiat, and it’s first luxury electric Jeep isn’t ready. And now, things are about to get bad.

In an email sent out by the UAW earlier today (received at 4:55PM CST), UAW President Shawn Fain wrote, “For years, the company picked us off plant-by-plant and we lacked the will and the means to fight back. Today is different. Because we stood together and demanded the right to strike over job security—product commitment—we have the tools to fight back and win … We unanimously recommend to the membership that every UAW worker at Stellantis prepare for a fight, and we all get ready to vote YES to authorize a strike at Stellantis.”

The dispute seems to stem from Stellantis’ inability to commit to new product (and continued employment) at its UAW-run plants and other failings to meet its strike-ending obligations. This, despite a €3 billion stock buyback executed in late 2023.

I’ve included the memo, in its entirety, below. Take a look for yourself, and let us know what you think of the UAW’s call for action in the comments.

UAW memo

SOURCE: UAW, via email.

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Kia EV9 GT caught with an active spoiler for the first time [Video]

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Kia EV9 GT caught with an active spoiler for the first time [Video]

Kia promises the new EV9 GT will have “enormous power,” but that’s not all. For the first time, the Kia EV9 GT was caught with an active spoiler, giving us a sneak peek at potential new upgrades.

The brand’s first three-row electric SUV is already making its presence known in the US, helping push Kia to back-to-back record sales months. Meanwhile, a more powerful, sporty variant is on the way.

Kia confirmed the EV9 GT will top off the electric SUV’s lineup in April. Packing “enormous power,” the high-performance GT model can accelerate from 0 to 62 mph (0 to 100 km/h) in 4 secs.

With a “high-output” dual-motor (AWD) system, the EV9 GT can quickly pick up speed despite weighing over 5,000 lbs.

Kia also equipped it with other high-performance features, such as a reinforced suspension and electronic braking system, for better control and stability.

We’ve already caught a glimpse of the performance electric SUV out testing, revealing aggressive new bumpers and wheels. Now, a new design feature has been spotted.

Kia-EV9-GT-active-spoiler
2024 Kia EV9 GT-Line (Source: Kia)

Kia EV9 GT could come with an active rear spoiler

The latest video from HealerTV shows the EV9 GT with what appears to be an active spoiler. As the reporter noted, it could be similar to the one spotted on the Genesis GV70 Magma.

Kia EV9 GT caught with an active rear spoiler

Tesla’s Model X also used to come with an active spoiler until it was dropped a few years back. Although the GT model was spotted with one, Kia could just be testing new features, so don’t get too excited yet.

Earlier this week, a video from HealerTV showed the front row of the EV9 GT, comparing it to the current GT-Line model.

Kia-EV9-GT-Line-interior
Kia EV9 GT-Line interior (Source: Kia)

Several differences can be immediately noticed, including a more aggressive, all-black design with a yellow stripe down the center of the seat.

Kia is set to launch the EV9 GT in early 2025. It will rival other performance SUVs like the Tesla Model X Plaid.

Although prices have yet to be confirmed, the GT model is expected to sit above the current GT-Line at $73,900. In comparison, Tesla’s Model X Plaid starts at $94,990 and can sprint from 0 to 60 mph in 2.5 secs.

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Chargeway and Consumer Reports team up to improve charging

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Chargeway and Consumer Reports team up to improve charging

Consumer Reports and EV charging app Chargeway are working together to give drivers a better way to rate public chargers, report uptime, and address maintenance issues.

The Chargeway app is best known for its use of numbers and colors to simplify the complexity of multiple charge ports and different charging speeds for new EV drivers. The app also enables Chargeway users to rate and review the public charging stations they visit – and now, those ratings can show up on Consumer Reports.

The technical collaboration with Chargeway is part of a larger effort called the EV Charging Community, which engages with a number of different EV advocacy groups including Plug In America, GreenLatinos, and Generation 180, and leverages the mobile app to rate public EV charging experiences based on various factors, with the findings reported back to industry stakeholders like EVSE manufacturers, CPOs, and utilities.

Be heard

“We are very excited to be partnering with Consumer Reports,” says Chargeway founder, Matt Teske. “From day one, Chargeway has focused on a driver first app design to provide easier EV charging experiences as well as transparency for what drivers can anticipate at (the) station they choose … we share Consumer Reports’ goal to give drivers a voice in the public EV charging reliability conversation. Now, instead of posting complaints on social media and feeling ignored, EV drivers can use the Chargeway mobile app to provide their feedback to the leading consumer advocacy organization.”

Consumer Reports says it’s already seen nearly a third of its 1,600 enrolled community members experience a problem with public charging, so it’s a real problem. “Charging stations are critical services, but when they’re out of order or barely functional, it wastes consumers’ valuable time,” explains Drew Toher, Consumer Reports’ sustainability campaign manager.

Consumer Reports points out that EV drivers who don’t use Chargeway can also enroll to be part of the community at this link.

Electrek’s Take

Chargeway founder Matt Teske is an old friend. He’s a good friend, too, so it’s great to see his top-shelf EV charging app starting to get some of the recognition it deserves. The CR tie-up and added visibility these ratings will give to industry stakeholders are only going to make things better for EV drivers everywhere.

That up there? That’s one of my early interview episodes of Quick Charge featuring a walkthrough of Chargeway+, another collab between Matt and Austin Energy. Enjoy!

SOURCE | IMAGES: Chargeway, Consumer Reports.

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