DUBAI, United Arab Emirates (Reuters) – Oil giant Saudi Aramco reported on Sunday that it made $161 billion last year, claiming a record annual profit for a publicly traded company, drawing immediate criticism from activists.
The company’s huge victory, officially known as Saudi Arabian Oil Company, came as energy prices skyrocketed after Russia launched a war with Ukraine in February 2022, and sanctions forced Moscow’s oil and gas sales to western markets were restricted.
Aramco also wants to ramp up production to take advantage of market demand as China re-enters global markets after lifting coronavirus restrictions. The prince could raise the billions needed for his plan to develop a futuristic cityscape and free Saudi Arabia from oil.
But these plans came despite growing international concern over the burning of fossil fuels, which are accelerating climate change. Meanwhile, rising energy prices are already straining relations between Riyadh and Washington and pushing up inflation around the world.
Revenue increased by 46.5% compared to his $110 billion in 2021 performance for the company. In 2020, he made $49 billion in revenue as the world faced the worst of the coronavirus pandemic’s lockdowns, travel disruptions and temporarily negative oil prices. Aramco expects crude oil production of about 11.5 million barrels per day in 2022 and hopes to reach 13 million barrels per day by 2027.
To accelerate this production, the company plans to spend up to $55 billion on capital projects this year.
Aramco also announced he will pay a $19.5 billion dividend in the fourth quarter of 2022. This is due to be paid out in the first quarter of this year.
Considered a guide to the global energy market, Aramco’s results reflect significant gains achieved in 2022 by UK energy giant BP, US Exxon Mobil, Shell and others. But the size of the $161 billion profit has overshadowed not only the records of Apple, Vodafone and the US, but past performance as well. Federal Mortgage Association or Fannie Mae. Benchmark Brent crude is currently trading around $82 a barrel, despite surpassing $120 a barrel in June. Aramco, whose fortunes depend on global energy prices, has announced that it achieved a record profit of $42.4 billion in the third quarter of 2022 after prices surged.
Those high prices have further strained relations between Saudi Arabia and the United States, which have traditionally ensured security between Gulf Arab states amid tensions with Iran. He said the Biden administration is trying to delay production cut decisions by OPEC and its allies, including Russia, which is common in the US region.
President Joe Biden has warned the kingdom that “there will be consequences for what they have done” regarding oil prices. However, those effects have yet to be seen as Saudi Arabia and Iran visited China on Friday to strike a diplomatic deal. US gasoline prices now average $3.47 a gallon, down about $1 from last year.
For the kingdom, rising oil prices may help fuel Prince Mohammed’s dreams, including his proposed $500 billion project for a futuristic desert city called Neom.
Callamard also pointed out that Saudi Arabia remains one of the world’s top executioners while cracking down on years of war in Yemen.
