Saudi oil giant posts monster profits

Oil giant Saudi Aramco reported record-high earnings for 2022, made off higher crude prices. According to a company press release issued on Sunday, Aramco’s profits surged to $161 billion last year, up 46% from the $110 billion it made in 2021.

Aramco, the world’s second most valuable firm, said the numbers represented its “highest annual profits as a listed company.” Aramco’s earnings nearly matched the combined figure for the so-called Big Oil majors Shell, BP, Exxon Mobil, Chevron, and TotalEnergies. The oil giants all reported record profits last year, but jointly beat Aramco only by around $30 billion.

The record-setting earnings were “underpinned by stronger crude oil prices, higher volumes sold and improved margins for refined products,” Aramco said. Oil prices spiked last year amid fears over Russian supplies, as Ukraine-related Western sanctions threatened to limit the sale of Russian crude on the global market.

Aramco said its crude production in 2022 amounted to roughly 11.5 million barrels a day. The company intends to gradually reach 13 million barrels a day by 2027. To achieve this goal, Aramco plans to spend some $55 billion this year on investment in capital projects.

“Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our industry are real – including contributing to higher energy prices. To leverage our unique advantages at scale and be part of the global solution, Aramco has embarked on the largest capital spending program in its history,” the company’s CEO, Amin H. Nasser, said in a statement on Sunday.

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