Compared to the $110 billion recorded in 2021, the Saudi oil giant’s net income took a significant leap growing more than 46% year-on-year in 2022.
Saudi Arabian Oil Group, also known as Aramco, announced its biggest annual profit in 2022. The state-controlled oil giant posted a record net income of $161.1 billion over the past year, up year-on-year. of 46.5%. Aramco, which hit an all-time high in 2022, can be tied to its impressive quarterly performance throughout the year. In the first quarter of 2022, the company’s net profit rose 80%, marking a new quarterly profit record for the oil giant. At the same time, first-quarter revenue was the highest since its public debut. Aramco achieved $39.5 billion in net profit during the first quarter amid rising global oil prices. CEO Amin Nasser noted that the company is committed to providing “reliable, affordable and increasingly sustainable” energy.
Aramco also reported a 90% increase in second-quarter 2022 net revenue, from $25.5 billion in second-quarter 2021 to $48.4 billion. Nasser said the impressive result, which beat analysts’ expectations, was prompted by higher demand. For the first six months of 2022, Aramco’s net income was $87.9 billion. According to results released in November, the oil company also beat expectations for revenue in the third quarter of 2022. Quarterly net income was $42.4 billion, up 39% year-over-year. The quarterly increases contributed to Saudi Arabia’s record annual profit, which is also the largest ever for an oil and gas company.
Aramco Posts Record Profits for 2022
Compared to $110 billion in 2021, the Saudi oil giant’s net income took a significant leap growing more than 46% year-on-year in 2022. The rise in oil and gas prices over the past year has improved margins for refined products and high sales volume contributed to a significant profit in 2022 for Aramco. Additionally, Aramco’s net profit for 2022 is about 3 times better than ExxonMobil’s results for the same period. ExxonMobil (NYSE: XOM) said in January that its 2022 profit was $56 billion. Nasser said: “This is probably the highest net income ever recorded in the corporate world.”
Multiple sanctions on Russia due to its invasion of Ukraine caused oil and gas prices to rise as access to supplies from Moscow was limited. Energy prices rose early last year but have slowed by around 25% year-on-year. Commenting on the current state, the head of Aramco commented:
“We are cautiously optimistic. Factoring in the opening up of China, the rebound in jet fuels, and very limited spare capacity, we are cautiously optimistic in the short to medium term. [that] markets will remain tightly balanced.”
The company plans to pay its fourth quarter 2022 dividend in the first quarter of this year and issue bonuses to eligible shareholders. Chief Financial Officer Ziad Al-Murshed noted that Aramco is financially capable of surviving “through the ups and downs of the cycle.”
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
