Saudi Arabian oil giant Saudi Aramco reported on Sunday a net profit of $161.1 billion for the 2022 fiscal year. A record annual profit for the company, this is a 46% rise from 2021 and occurred during a period of higher energy prices as well as increased sales volumes.
“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 confirmed in the company’s results statement.
Aramco’s capital expenditure rose 18% to $37.6 billion for the year, with this year’s expenditure set to be between $45.0 billion to $55.0 billion. The company is also looking to boost crude production as it aims to reach its target of 13 million barrels per day (bpd) by 2027.
The Saudi oil giant’s rise in profitability follows the general trend in the oil industry for 2022, with competitors such as BP, Shell, and Chevron also reporting record profits for the year. Profitability was largely affected by turbulent oil prices following the outbreak of the Russia-Ukraine conflict.