Saudi Aramco profits jump despite conflict in Middle East
Despite? Oil price doublkes (or whatever) and a rise in profits for an oil company is a despite?
But Guardian, numbers, business, etc, etc.
Saudi Aramco profits jump despite conflict in Middle East
Despite? Oil price doublkes (or whatever) and a rise in profits for an oil company is a despite?
But Guardian, numbers, business, etc, etc.
Given the reason that the oil price has spiked is because oil can’t get out the Gulf, Aramco’s profits rising on the small proportion it can pipeline to the Red Sea is quite impressive.
Correct me if I’m wrong but I think oil companies have to put a valuation on their stock n the accounts. Value rises, so do profits.
It’s been a long time since I was a working accountant, but I don’t think trading stock is marked-to-market.
I’m with Matt – I wouldn’t have been surprised to see Aramco profits down, with the drop in volume more than offsetting the increase in price.
Well, there’s no way a company owned by the Saudi government could be cooking the books, so I guess we must accept their numbers. 🙂
A quoted company is expected to write down the value of stock/work in progress ro realisable value if it is less than cost. “Mark to market” is most commonly used for “financial assets/liabilities”. The FIFO practice will lead to an increase in *reported* profits when the price rises as the opening stock is sold at a higher price and none of the closing stock is written down.
There is another way of making profits which BP exploited in order to report $3.2bn which is oil trading where oil majors benefit from better information than most traders and Saudi Aramco may have made some profits from this.
Never mind they’ll make just as much of a fuss when the firm’s profits decline again. Won’t they?