Saudi state-owned oil company Aramco, the world’s largest, posted a record $161,000 million in net profit in 2022, up 46.5 percent year-on-year, on the back of soaring crude oil prices, the war in Ukraine and increased demand for oil after the pandemic. This is the Saudi oil company’s “highest annual profit as a publicly traded company,” Saudi Aramco said in a statement released Sunday. “Net income increased 46.5% to a record $161.1 billion in 2022, compared to $110 billion in 2021,” the note added.
The company attributes the increase in its net profit to “stronger crude oil prices, higher volumes sold and improved margins for refined products” and asserts that it will “continue to strengthen its oil and gas production capacity as well as its downstream portfolio (refining) to meet demand.” The company’s Executive President, Amin Nasser, asserted in the statement that this “financial record achievement” took place in 2022 because “oil prices have increased due to increased global demand”.
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“We remain focused on our long-term strategy of building capacity and capabilities across the value chain to address energy security and sustainability,” he adds. According to the statement, the Saudi oil major’s capital spending was $37.6 billion in 2022, up 18% from 2021, a number that Aramco expects to estimate at about $45 billion and $55 billion in the year 2023 will increase. Free cash reached a record $148.5 billion in 2022, compared to $107.5 billion in 2021.
On the other hand, the Saudi oil major announced a dividend of 19.5 billion for the fourth quarter of 2022, which it will distribute in the first quarter of 2023. “This represents a 4% increase sequentially, in line with the company’s dividend policy, which aims to deliver a sustainable and progressive dividend,” he adds.
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