Saudi Arabia's largest oil company, Aramco, has announced that it earned a profit of $161.1 billion in 2022, which is a 46.5% increase compared to the previous year. The announcement was made after a rise in energy prices following the February 2022 attack on Ukraine by Russia. This is also the first announcement of its record profits since the attack. ExxonMobil reported $55.7 billion and Shell reported $39.9 billion in profits for the same year. Aramco has also announced a dividend distribution of $19.5 billion for the three months from October to December 2022, to be paid to shareholders in the first quarter of 2023.
The majority of this profit will go to the Saudi Arabian government, which owns almost 95% of the company's shares. The price of crude oil is currently around $82 per barrel, but it had exceeded $120 per barrel in March after the attack on Ukraine by Russia. Robert Mogielnicki of the Arab Gulf States Institute in Washington said, "Aramco benefited immensely from high energy prices in 2022." According to him, "It would have been difficult for Aramco not to show such strong performance in 2022.Aramco. The article reports that Aramco has announced a net income of $49 billion in 2021, which is a significant increase from the previous year. The company attributes its success to strong oil prices, increased sales, and higher margins on better products.Aramco's CEO, Amin Nasser, has stated that the company expects oil and gas to remain essential in the near future, but also recognizes the risks of low investment in the industry, including high energy prices. To address these challenges, the company plans to invest not only in oil, gas, and chemicals production, but also in new low-carbon technologies.The article notes that Aramco is the second-largest company in the world after Apple to participate in reducing greenhouse gas emissions through the use of renewable energy sources. Amnesty International has criticized the company's reliance on fossil fuels and its contribution to environmental crises.The article further highlights that the global increase in energy prices and the conflict between Russia and Ukraine have contributed to Aramco's success, and emphasizes that Saudi Arabia is the largest producer of oil in the Organization of the Petroleum Exporting Countries (OPEC).
Aramco, regarding its financial performance and future plans. Aramco's president and CEO, Amin Nasser, stated that the company's strong performance is based on "robust oil prices, higher sales, and better margins on higher-value products."
Nasser also acknowledged the risks to the industry, including the high cost of energy and the risks of low capital investment. To address these challenges, Aramco plans to not only increase production of oil, gas, and chemicals, but also invest in new low-carbon technologies.
Aramco is the world's second-largest company after Apple and is also one of the largest contributors to greenhouse gas emissions through its production of fossil fuels. Amnesty International's Secretary-General, Agnes Callamard, criticized the announcement, stating that "the profits made by a single company through the sale of fossil fuels in just one year, $161 billion, are staggering. This fuel is also the biggest single contributor to the climate crisis."
She also noted that the announcement is particularly concerning given the recent crisis in energy prices and tensions between Russia and Ukraine, which have contributed to price increases globally.
The article also mentions the Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia is the largest producer, and its impact on global oil production.
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