Saudi Aramco reports record profit of $161.1 billion in 2022

The profits follow similar reports in February from international peers BP, Shell, Exxon Mobil and Chevron, which have mostly posted record profits for last year.

Oil prices swung wildly in 2022, climbing on geopolitical worries amid the war in Ukraine, then sliding on weaker demand from top importer China and worries of an economic contraction.

"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," Aramco's chief executive Amin Nasser said in the results statement.

To address those challenges, the company is not only focused on expanding oil, gas and chemicals production but also investing in new lower-carbon technologies with the potential to achieve additional emission reductions, Nasser said.

Aramco's capital expenditure rose 18% to $37.6 billion in 2022 and the company said it expects this year's spending to be around $45.0 billion to $55.0 billion including external investments.

Aramco declared a dividend of $19.5 billion for the fourth quarter, an increase of 4% from the previous quarter.

Its board also recommended issuing bonus shares, with eligible shareholders receiving one share for every 10 shares owned.

Free cash flow reached a record of $148.5 billion in 2022, compared to $107.5 billion in 2021.

Prices surged in March last year as Russia's invasion of Ukraine upended global crude flows, with international benchmark Brent reaching $139.13 a barrel, the highest since 2008.

Prices cooled rapidly in the second half of 2022 as central banks hiked interest rates and fanned worries of recession.

Reuters

Related News

Thailand and Saudi hail rapid escalation of ties, set agenda for 2023

How'd it go? Giving 800 Saudi VVIPs in Thailand a high-end concierge service

New Saudi investment will raise incomes in Thailand, PM says