Saudi Arabian Oil Company (Aramco) has recorded its highest annual profits as a listed company for FY 2022 with a net income of $161 billion, up 46.5% over the previous year, while its free cash flow increased to $148.5 billion.
Announcing its results for the 12-month period ended December 31, 2022, Aramco said its results were underpinned by stronger crude oil prices, higher volumes sold and improved margins for refined products, while the company continues to strengthen its oil and gas production capacity, as well as its downstream portfolio, to meet anticipated future demand.
The state oil major also reported record cash flow from operating activities which soared to $186.2 billion from $139.4 billion the previous year.
The capital expenditure too surged by 18% year-on-year, as progress continues on multiple fronts to deliver reliable, affordable and more sustainable energy.
Aramco expects 2023 capital expenditure to be $45 billion to $55 billion including external investments, with capex increasing until around the middle of the decade.
The Saudi oil giant also completed an energy infrastructure deal in February 2022 resulting in a consortium of investors, led by BlackRock Real Assets and Hassana Investment Company, acquiring a 49% stake in a newly formed subsidiary, Aramco Gas Pipelines Company (AGPC), for $15.5 billion.
In 2022, Aramco’s average hydrocarbon production stood at 13.6 million barrels of oil equivalent per day (mmboed), including 11.5 million barrels per day (mmbpd) of total liquids.
It continued its strong track record of supply reliability by delivering crude oil and other products with 99.9% reliability in 2022. It was the third year running that Aramco achieved this level of reliability.
Upstream continued to execute its growth plans to promote long-term productivity of Saudi Arabia’s reservoirs and is proceeding with implementing the Government’s mandate to increase Aramco’s crude oil MSC to 13.0 mmbpd by 2027, stated the report.
According to Aramco, construction and engineering activities for the Marjan and Berri crude oil increments continue to progress, and are expected to add production capacity of 300,000 barrels per day (bpd) and 250,000 bpd, respectively, by 2025.
The Zuluf crude oil increment is in the engineering phase, and is expected to provide a central facility to process a total of 600,000 bpd of crude oil from the Zuluf field by 2026, said the statement.
Construction activities are also continuing on the Dammam development project, which is expected to add 25,000 bpd and 50,000 bpd of crude oil by 2024 and 2027, respectively, it added.
On its Q4 results, Aramco said the net income for the three-month period ended December 31, 2022 was in line with analyst consensus, excluding certain non-cash items of $3.3 billion.
net income of $161.1 billion — its highest annual profits as a listed company. Aramco also declared a fourth quarter dividend of $19.5 billion, to be paid in the first quarter of 2023.
Impressed with the resulst, Aramco's board of directors has declared a dividend of $19.5 billion for Q4, to be paid later this month. This represents a 4% increase compared to the previous quarter, aligned with the company’s dividend policy aiming to deliver a sustainable and progressive dividend.
Additionally, the board also recommended the distribution of bonus shares to eligible shareholders in the amount of one share for every 10 shares held, subject to required Extraordinary General Assembly and regulatory approvals.
Commenting on the solid results, Aramco President & CEO Amin H Nasser said: "Aramco delivered record financial performance in 2022, as oil prices strengthened due to increased demand around the world. We also continued to focus on our long-term strategy, building both capacity and capability across the value chain with the aim of addressing energy security and sustainability."
"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. To leverage our unique advantages at scale and be part of the global solution, Aramco has embarked on the largest capital spending program in its history, and last year our capex rose by 18.0% to reach $37.6 billion," stated Nasser.
"Our focus is not only on expanding oil, gas and chemicals production, but also investing in new lower-carbon technologies with potential to achieve additional emission reductions — in our own operations and for end users of our products," he added.-TradeArabia News Service