Saudi Aramco, the world’s largest oil company, revealed on Sunday that it achieved a record-high profit of $161.1 billion in 2022, crediting the significant increase in earnings on increased crude oil prices.
Aramco, officially known as the Saudi Arabian Oil Company, reported a 46.5 percent rise in net income year on year from $110 billion in 2021.
Amin H. Nasser, CEO and President of Saudi Aramco, stated in a statement that the company’s record financial success was attributable to growing global oil demand.
Nasser stated that the company will invest $37.6 billion to increase production capacity as part of the “biggest capital spending program” in Aramco’s history.
“Given that we expect oil and gas to remain crucial for the foreseeable future, the risks of underinvestment in our industry are significant — including contributing to rising energy costs,” he said.
Aramco also issued a cash dividend of $19.5 billion for the fourth quarter of 2022, a 4% increase over the previous quarter, which will be paid in the first quarter of this year.
According to The Associated Press, Aramco made a record $42.4 billion profit in the third quarter, following a surge in Brent Crude Oil prices to more than $120 per barrel in June. The market currently values it at roughly $82 per barrel.
According to the Institute of International Finance, every $10 increase in the price of a barrel of oil earns Saudi Arabia an additional $40 billion every year.
Aramco shares were trading at $8.74 on Riyadh’s Tadawul stock exchange before the market started on Sunday, down from a high of $11.55 in the previous year, according to The Associated Press.
The current price values Aramco at $1.9 trillion, making it the world’s second-most valuable firm behind Apple.