Aramco, Saudi Arabia’s state oil company, projected an annual net profit which doubled in the year of 2021, boosted by higher oil prices, and announced plans to significantly increase capital investment in 2022.
Last year, the oil giant benefited from a more than 50 percent increase in crude prices, as rising COVID 19 vaccination rates and loosening restrictions resulted in demand exceeding supply.
Oil prices soared beyond $100 per barrel last month following Russia’s invasion of Ukraine, which Moscow describes as a ‘special operation.’
Net profit increased to $110 billion for the fiscal year ended December 31, up from $49 billion the previous year.
According to the average analyst estimate in Refinitiv’s Eikon, experts predicted a net profit of $106 billion in 2021.
Aramco stated that it intends to increase capital investment to $40-50 billion in 2022, with further growth likely through the middle of the decade.
Capital spending in 2021 was $31.9 billion, an 18 percent increase over 2020.
Aramco intends to increase crude oil ‘maximum sustainable capacity’ to 13 million barrels per day by 2027, and to increase gas production by more than half by 2030.
Aramco also plans to build a major hydrogen export capability and become a global leader in carbon capture and storage, according to the company.
‘While economic conditions have improved significantly, the outlook remains unpredictable due to several macroeconomic and geopolitical variables,’ said CEO Amin Nasser in a statement.
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