Aramco Reports Record-Breaking Profits of $161.1 Billion in 2022
On Sunday, the Saudi Arabian oil giant Aramco reported a net profit of $161.1 billion for the year 2022 — the largest annual profit ever achieved by an oil and gas company — a 46% increase from the previous year.[0] This extraordinary figure is nearly triple that of Exxon's $56 billion and more than that of Google, Amazon, Tesla, and Microsoft combined for the same time period.
The increase in Aramco's profits was attributed to higher energy prices, increased volumes sold, and improved margins for refined products.[1] The surge in cash flow is also attributable to these factors and is recorded at $148.5 billion, a significant jump from the previous year's $107.5 billion.
Saudi Arabia's gross domestic product (GDP) grew by 8.7% in 2022, exceeding the international forecasts, which put it at maximum of 8.3%.[2] The company's profits for last year are almost triple that of Exxon’s $56bn and more than four times that of Shell ($39.9bn), Chevron ($36.5bn) and BP ($27.7bn), most of which are also performing at record levels.
Aramco CEO Amin Nasser said on a Sunday earnings call, “This is probably the highest net income ever recorded in the corporate world.”[3] He added that the company is cautiously optimistic about the market and that it will remain tightly balanced in the short to mid-term.[4]
Capital expenditure rose by 18% to $37.6 billion last year, and is expected to increase to between $45 billion and $55 billion in the coming years.[4]
The news of Aramco's record-breaking profits has, however, drawn criticism from human rights groups like Amnesty International.[5] Agnès Callamard, the organization's Secretary General, said, “It is shocking for a company to make a profit of more than US$161 billion in a single year through the sale of fossil fuel – the single largest driver of the climate crisis.”[2] She added that Saudi Arabia should act in humanity's interest and support the phasing out of the fossil fuel industry to prevent further climate harm.[3]
Aramco's profits for the year 2022 demonstrate the power of the oil and gas industry to generate vast profits which can fuel economic growth.
0. “Four takeaways as oil giant Saudi Aramco reports a huge $161 billion profit” WBUR News, 12 Mar. 2023, https://www.wbur.org/npr/1162913165/four-takeaways-oil-giant-saudi-aramco-a-huge-161bn-profit
1. “Saudi Aramco reports record profit of $161.1 billion in 2022, more than Google, Amazon, Microsoft and Tesla combined” Business Today, 12 Mar. 2023, https://www.businesstoday.in/latest/corporate/story/saudi-aramco-reports-record-profit-of-161-billion-in-2022-more-than-google-amazon-microsoft-and-tesla-combined-373080-2023-03-12
2. “Saudi Aramco records $161 billion profit for 2022” The News International, 12 Mar. 2023, https://www.thenews.com.pk/latest/1049242-saudi-aramco-records-161-billion-profit-for-2022
3. “‘Shocking': Saudi Aramco Posts Largest-Ever Annual Profit for a Fossil Fuel Company” Common Dreams, 12 Mar. 2023, https://www.commondreams.org/news/saudi-aramco-largest-annual-profit
4. “Saudi oil giant Aramco posts record $161 billion profit for 2022” CNBC, 12 Mar. 2023, https://www.cnbc.com/2023/03/12/saudi-oil-giant-aramco-posts-record-161point1-billion-profit-for-2022.html
5. “Affordability and supply security key to achieving energy transition: Aramco CEO” Arab News, 12 Mar. 2023, https://www.arabnews.com/node/2267056/business-economy
