Saudi Aramco reported a record $161bn profit (PS134bn), the highest annual profit of any oil and gas company. This is due to rising energy prices and growing global demand.
The largely state-owned company’s profits rose by 46% year on year and it made more than the recent bumper results reported by Shell and BP together.
Amin Nasser (chief executive of Saudi Aramco), stated that Aramco had a record financial performance in 2022 as oil prices rose due to higher demand around the globe.
After its fourth quarter trading, the world’s largest oil company, which is 95% owned by Saudi Arabian government declared a $19.5 billion dividend
The board also recommended that bonus shares be issued. Investors would receive an additional share for each 10 they own.
Although oil and gas companies are seeing bumper results due to factors like the war in Ukraine, with bosses claiming “jaw-dropping” pay packages, Saudi Aramco’s performance is better than its competitors.
The company’s profits for last year are almost triple that of Exxon’s $56bn and more than four times that of Shell ($39.9bn), Chevron ($36.5bn) and BP ($27.7bn), most of which are also performing at record levels.
Saudi Aramco is the second-most valuable publicly traded company in the world after Apple. It said that its results were “underpinned” by higher crude oil prices, higher volumes, and better margins for refined products.
Brent crude oil, which is the benchmark oil price, fell back to $82 per barrel after hitting $120 per barrel following Russia’s invasion Ukraine.
The company reiterated that it will continue to invest in its maximum production capacity, which is expected to reach 13m barrels per day by 2027.
The company stated that capital expenditures rose 18% to $37.6bn in 2013 and will rise to between $45bn to $55bn over the next few years.
Nasser stated that “our focus isn’t just on increasing oil, gas, and chemicals production. We also invest in new lower carbon technologies that have the potential to reduce our own emissions and those of our end users.”
Amnesty International stated that Saudi Aramco’s profits are “shocking” and should be used for a human-rights-based transition to renewable energy.
“It’s shocking that a company can make more than $161bn per year from the sale of fossil fuels – the single biggest driver of climate crisis,” stated Agnes Callamard ,Amnesty International secretary general. This is especially shocking given that the surplus was built up during a global crisis in cost of living and helped by an increase in energy prices due to Russia’s aggression against Ukraine.
“It’s past time Saudi Arabia took action in the humanity’s best interests and supported the phasing-out of fossil fuel industries, which is vital for preventing future climate damage.”