Saudi Aramco posts record $161bn profit on back of strong crude prices

Saudi Aramco reported file earnings of $161bn in 2022 and elevated its payout to shareholders because the largely state-owned oil firm cashed in on a tumultuous 12 months in vitality markets.

The Saudi Arabian producer on Sunday mentioned it offered extra oil than in 2021, improved refining margins and benefited from robust crude costs, which helped web revenue rise 47 per cent to its highest because the firm started publishing outcomes after itemizing in 2019.

The massive earnings full a file set of earnings for the world’s greatest oil and gasoline firms after fossil gas costs soared final 12 months attributable to disruption from Russia’s full-scale invasion of Ukraine. Shell reported 2022 earnings of just about $40bn, the very best in its 115-year historical past, whereas ExxonMobil made earnings of $55.7bn, probably the most ever for a western oil firm.

Saudi Aramco is the world’s greatest crude producer and one of many few firms with extra manufacturing capability that can be utilized by the Saudi Arabian authorities to extend or lower provide according to world demand. It elevated output by 2022 earlier than Saudi Arabia, in partnership with different members of the Opec cartel, defied US strain and lower manufacturing in November in response to what it mentioned was a weaker outlook for demand.

Final 12 months, it produced 11.5mn barrels a day of crude oil and different liquids, representing about 10 per cent of the world’s crude provide.

Whereas many rivals have slowed funding in oil provide as they search to scale back their emissions, Saudi Aramco is one in every of few firms investing in rising its most manufacturing capability, from 12mn barrels per day to 13mn. Whole capital expenditure in 2022 was up 18 per cent 12 months on 12 months, at $37.6bn, in contrast with $24.8bn spent by Shell. Saudi Aramco expects to spend $45bn to $55bn in 2023.

Amin Nasser, chief govt, mentioned the “dangers of under-investment” in oil and gasoline manufacturing have been actual and already contributing to greater costs. “To leverage our distinctive benefits at scale and be a part of the worldwide resolution, Aramco has launched into the most important capital spending program in its historical past,” he mentioned.

Free money move from operations was $148.5bn, in contrast with $107.5bn in 2021.

On the again of file earnings Aramco elevated its dividend, one of many greatest payouts on the planet, by 4 per cent for the fourth quarter to $19.5bn, to be paid by the tip of March.

The cost is a crucial income for the Saudi Arabian authorities, which nonetheless immediately owns 94 per cent of Saudi Aramco inventory. It listed just below 2 per cent of the corporate’s shares in December 2019 and handed one other 4 per cent to the Saudi sovereign wealth fund final 12 months.

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