Saudi Arabian Oil : Q1 results press release

Press Release

Aramco announces first quarter 2021 results

Net income rises 30% year-on-year as upside captured from improved economic environment

• Net income: $21.7 billion
• Cash flow from operating activities: $26.5 billion
• Free cash flow*: $18.3 billion
• Q4 2020 dividend of $18.8 billion paid in the first quarter; Q1 2021 dividend of $18.8 billion to be paid in the second quarter

Dhahran, Saudi Arabia, May 4, 2021 - The Saudi Arabian Oil Company ("Aramco" or "the Company") today announced its first quarter financial results, posting a 30% year-on-year increase in net income to $21.7 billion and declaring a dividend of $18.8 billion to be paid in Q2. The results were underpinned by higher oil prices and an improved economic environment in the first three months of 2021.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said:

"The momentum provided by the global economic recovery has strengthened energy markets, and Aramco's operational flexibility, financial agility and the resilience of our employees have contributed to a strong first quarter performance. For our customers we remain a supplier of choice, and for our shareholders we continue to deliver an exceptional quarterly dividend.

"We made further progress towards our strategic objectives during the quarter and our portfolio optimization program continues to identify value creation opportunities, such as the recent announcement of our landmark $12.4 billion pipeline infrastructure deal. We also expect Saudi Arabia's newly-launched Shareek program to present growth opportunities, through incentives which encourage partnerships and investment.

"Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming. And while some headwinds still remain, we are well-positioned to meet the world's growing energy needs as economies start to recover."

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Financial Highlights

Aramco's net income was $21.7 billion for the first quarter, a 30% increase from $16.7 billion in Q1 2020, primarily driven by a stronger oil market and higher refining and chemicals margins, partly offset by lower production.

Cash flow from operating activities and free cash flow* was $26.5 billion and $18.3 billion respectively in the first quarter, while first quarter capital expenditure stood at $8.2 billion.

Aramco's gearing ratio* remained unchanged at 23.0% on March 31, 2021, compared to December 31, 2020.

Aramco declared a dividend of $18.8 billion for the first quarter, to be paid in Q2 2021.

Operational Highlights

Aramco demonstrated reliable upstream performance with an average total hydrocarbon production of 11.5 million barrels per day of oil equivalent in the first quarter of 2021, including 8.6 million barrels per day of crude oil.

The Company maintained its exceptional track record as a global energy supplier, achieving 100% reliability in its deliveries to customers during the first quarter.

In January, Aramco partnered with stc, a leading telecom and technology services company, to launch one of the world's most powerful supercomputers, Dammam 7. Its high-performance computing capability of 55.4 petaflops presents new opportunities in both exploration and development, enhancing Aramco's ability to predict the location of new reserves using sophisticated imaging and artificial intelligence deep learning technologies. Dammam 7 supports Aramco's digital transformation program, complementing a suite of advanced technologies that are reshaping core operations, driving efficiencies and reinforcing its industry leadership.

During the first quarter, Aramco and The Dow Chemical Company, partners in the Sadara Chemical Company (Sadara) joint venture, entered into agreements relating to their Sadara joint venture. This includes extending the debt repayment tenure, a grace period for interest payments and sponsor guarantees. It further includes other agreements with respect to procurement of feedstock and marketing rights for Sadara's finished products.

Aramco planted more than 500,000 trees during the first quarter, successfully completing its program to plant one million trees. The program's main objective is to mitigate desertification, sequester carbon, and enhance native biodiversity. The One Million Trees Initiative aligns with the United Nations Biodiversity and Sustainability Development Goals, and is part of the Company's commitment to protecting the environment.

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The Company also contributed to COVID-19 vaccination efforts during the first quarter to protect its workforce and the wider community from the risk of infection. As of April 30, more than 178,000 Aramco employees, retirees and their dependents had received vaccinations. This includes around 85% of the Aramco workforce. These were administered either through Aramco's vaccination program, being conducted from 14 locations across Saudi Arabia in conjunction with its medical partner Johns Hopkins Aramco Healthcare, or through a government vaccination scheme.

*Please refer to www.aramco.com/investorsfor reconciliation of non-IFRS measures

Contact Information

International Media Relations: [e-mail]

Investor Relations:[e-mail]

Aramco

Disclaimer

The press release contains forward-looking statements. All statements other than statements relating to historical or current facts included in the press release are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its capital expenditures and investments, major projects, upstream and downstream performance, including relative to peers. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," ," "can have," "likely," "should," "could," and other words and terms of similar meaning or the negative thereof. Such forward looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance, or achievements expressed or implied by such forward looking statements, including the following factors: international crude oil supply and demand and the price at which it sells crude oil; the impact of COVID-19 on business and economic conditions and on supply and demand for crude oil, gas and refined and petrochemical products; competitive pressure; climate change concerns and impacts; terrorism and armed conflict; adverse economic or political developments in Asia; operational risks and hazards in the oil and gas, refining and petrochemicals industries; any significant deviation or changes in existing economic and operating conditions that could affect the estimated quantity and value of the Company's proved reserves; losses from risks related to insufficient insurance; the Company's ability to deliver on current and future projects; comparability amongst periods; the Company's ability to realize benefits from recent and future acquisitions, including with respect to SABIC; risks related to operating in several countries; the Company's dependence on its senior management and key personnel; the reliability and security of the Company's IT systems; litigation to which the Company is or may be subject; ; risks related to oil, gas, environmental, health and safety and other regulations that impact the industries in which the Company operates; risks related to international operations, including sanctions and trade restrictions, anti-bribery and anti-corruption laws and other laws and regulations; risks stemming from requirements to obtain, maintain, and renew governmental licenses, permits, and approvals; risks stemming from existing and potential laws, regulations, and other requirements or expectations relating to environmental protection, health and safety laws and regulations, and sale and use of chemicals and plastics; potential changes in equalization compensation received in connection with domestic sales of hydrocarbons; potential impact on tax rates if the Company does not separate its downstream business in a timeframe set by the Government of Saudi Arabia; risks related to Government- directed projects and other Government requirements, including those related to Government-set maximum level of crude oil production and target MSC; as well as the importance of the hydrocarbon industry to the Government; political and social instability and unrest and actual or potential armed conflicts in the regions in which the Company operates and other areas; risks arising should the Government eliminate or change the pegging of SAR to the U.S. dollar; and other risks and uncertainties that could cause actual results to differ from the forward looking statements in this press release, as set forth in the Company's latest periodic reports filed with the Tadawul. For additional information on the potential risks and uncertainties that could cause actual results to differ from the results predicted please see the Company's latest periodic reports filed with the Tadawul. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

The information contained in the press release, including but not limited to forward-looking statements, applies only as of the date of this press release and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the press release, including any financial data or forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law or regulation. No person should construe the press release as financial, tax or investment advice.

Undue reliance should not be placed on the forward‐looking statements.

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