Saudi Aramco wants to become cleaner in the future and invest in green hydrogen.
(Photo: Reuters)
Berlin Saudi Aramco reported a record profit for the past financial year: At $161.1 billion, the majority-owned Saudi oil company earned more than it had ever done since going public in 2019. In the previous year, the world’s largest oil company posted net profits of $110 billion. Amin Nasser, President and CEO of Aramco, said on Sunday that the main reason for the 46.5 percent increase in profit was: “Oil prices have risen due to higher global demand.”
The prices had also risen sharply because supply was temporarily scarce due to Russia’s war of aggression against Ukraine. Shell, Total Energies, Eni and the US oil giants Exxon Mobil and Chevron had also recently reported strong profit jumps.
In addition, Aramco was able to produce and sell significantly more crude oil. The group also achieved a significantly higher margin for its refined products. With 13.6 million barrels of oil equivalent per day, the oil giant produces more oil than any other company. On Sunday, the company also announced that it would continue to significantly increase its investments and the dividend.
$19.5 billion dividend – mostly for the state
With 19.5 billion dollars for the last quarter alone, the group pays out more than ever before – mainly to the majority shareholder Saudi Arabia. For the kingdom, the oil company with its payments for production licenses, taxes and dividends is the main source of income.
Nasser also announced plans to further increase Aramco’s investments to between $45 billion and $55 billion. In 2022, they amounted to $37.6 billion. Nasser and Energy Minister Prince Abdulaziz bin Saud have repeatedly stressed the need to invest more in oil exploration and production. Otherwise there would be significant deficits and price jumps.
In addition, Aramco is building a second division: the subsidiary for green energies alone will be larger than most energy companies globally. According to Energy Minister Prince Abdulaziz, Saudi Arabia is to become the world’s largest exporter of green hydrogen – i.e. hydrogen produced using renewable energies.
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