Energy News Today

Saudi Aramco full-year profit more than doubles on soaring oil prices


An employee looks on at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019.

Maxim Shemetov | Reuters

Saudi Arabian oil giant Aramco reported blowout full-year earnings on Sunday, posting a more than doubling in year-on-year net profit to $110 billion.

Aramco’s 2021 net income increased by 124% to $110 billion in 2021, compared to $49 billion in 2020, citing higher crude oil prices, stronger refining and chemicals margins, and the consolidation of its chemicals business, SABIC’s, full-year results. 

The numbers were in line with expectations, with analysts surveyed by Reuters forecasting net income of $109.7 billion for the full year. Aramco shares on the Saudi Tadawul Exchange rose almost 4% in Sunday trading after the result.

“Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy, which targets value growth for our shareholders,” Aramco CEO Amin Nasser said in the results release.

Surging oil

Aramco benefitted from surging oil prices during 2021, with international benchmark Brent crude rising above $80 a barrel by the end of the year, up roughly 50% for the 12-month period. Supply shortages added to a complex slew of factors driving major uncertainty across the energy and commodity complex, even before Russia’s invasion of Ukraine.

 “Although economic conditions have improved considerably, the outlook remains uncertain due to various macro-economic and geopolitical factors,” he added. It comes after the IEA warned that the oil market was heading for its “biggest supply crisis in decades” as Russian sanctions hit and buyers shun its exports.

“We see healthy oil demand. Unfortunately there is shrinking global spare capacity, combined with low inventories and a lack of investment,” Nasser said on an earnings call Sunday. He also blamed “a transition plan that is totally unrealistic” for the current pricing dynamic. 

The result and earnings call also came just hours after Saudi authorities confirmed another attack on Aramco facilities on Sunday, with Houthi rebels using missiles and drones to target at least six sites across Saudi Arabia, including an Aramco fuel depot and a liquefied natural gas plant.

“There were no injuries or fatalities, and no impact on the company’s supplies to customers,” Nasser said.

“We’ve demonstrated our ability to respond swiftly and effectively,” Nasser said, pointing to Aramco’s response to a major attack on its facilities in 2019. “We were able to restore operations rapidly, while ensuring reliability of supply to our customers.” 

Special payout plan

Increasing capacity



Read More:
Saudi Aramco full-year profit more than doubles on soaring oil prices

2022-03-20 04:19:31

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy
%d bloggers like this: