The Saudi oil company wants to produce more fossil energy.
(Photo: REUTERS)
riad Oil company Saudi Aramco more than doubled its profits last year thanks to the strong recovery in oil prices. The surplus rose to $110 billion in 2021 from $49 billion a year earlier, the Saudi industry giant said on Sunday.
Like peers like BP, Exxon Mobil, Chevron, and Shell, Aramco benefited from last year’s global economic recovery, which boosted demand for oil and, in turn, the price. In the past few weeks, oil prices have skyrocketed further because of the Russian war against Ukraine and the associated sanctions against the important oil producing country Russia. A barrel of North Sea Brent was traded at a good 139 dollars at the top and was thus as expensive as it was last time in 2008.
More investment for production
In this market environment, Saudi Aramco now wants to invest more money in production. Overall, management calculates capital expenditures of around 40 to 50 billion dollars for 2022, after these had already risen by around a fifth to almost 32 billion dollars in 2021. Expenditure is expected to increase further through the middle of the decade. Crude oil production capacity is also set to increase from 12 to 13 million barrels per day (159 liters) by 2027.
For 2021, a total of $75 billion is to be paid out as a cash dividend, which, contrary to analysts’ expectations, is not an increase. However, bonus shares are to be issued to shareholders, one new share for every 10 held. The biggest beneficiary of the dividend is Saudi Arabia, which, according to data from the Bloomberg news agency, held around 94 percent of the shares before the bonus papers were issued.
Top jobs of the day
Find the best jobs now and
be notified by email.
More: Why the price of gas stays high while the price of oil falls
