LUCRATIVE oil trading continues to power record results at global energy giants, with state-owned Saudi Aramco yesterday unveiling a massive 82 per cent spike in profits over the first three months of the year.

Aramco, which frequently alternates with Apple as the world's most valuable company, revealed a net income of $39.5bn (£32.2bn) for the quarter up to 31 March.

Its results were boosted by strong oil prices which soared to 14-year highs in March, peaking at $139 per barrel following Russia's invasion of Ukraine and concerns over supply shortages.

The energy giant said its earnings were the highest in any three-month window since it went public, powered not just by crude prices, but also by volumes sold and improved downstream margins.

Aramco declared a massive dividend of $18.8bn to be paid in the second quarter, and approved the distribution of one bonus share for every 10 shares held in the company.

Shares in the company have risen 37 per cent since the start of the year, out- performing the Saudi index, which is 14 per cent up over the same time period.

Its eye-watering performance follows both UK majors BP and Shell reporting their highest earnings in at least a decade, on the back of spiralling commodity prices and rebounding post-lockdown demand for fuel supplies.

Despite hefty write-downs from exiting Russia, BP enjoyed strong underlying profits of $6.2bn, while Shell posted profits of $9.13bn.

Both energy firms have also raised their own buyback schemes.

BP has announced dividend pay-outs of $1.5bn per quarter this year, while Shell has raised its own pay-off plans to $8.5bn following its move to London.

Both major benchmarks are up four per cent heading into this week, amid early signs China could begin lifting pandemic restrictions in Shanghai.

There is also the prospect of an EU ban on Russian oil imports, with the bloc pushing for a sixth package of sanctions following the invasion of Ukraine.

Hungary remains the main obstacle for a planned phase-out of Russian oil supplies, with the country pushing for piped supplies to be exempt from a ban.

(c) 2022 City A.M., source Newspaper