An employee looks after the Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019.
Maxim Shemetov | Reuters
Saudi Arabia’s oil giant Aramco reported a sharp drop in full-year earnings on Sunday, posting full-year net profit more than doubling to $110 billion.
Aramco’s 2021 net income grew 124% to $110 billion in 2021, from $49 billion in 2020, due to higher crude oil prices, better chemical and chemical refining margins, and consolidation. chemical business, SABIC’s full year results.
The numbers were in line with expectations, with analysts surveyed by Reuters forecasting net income of $109.7 billion for the full year. Shares rose 4% on Sunday, according to Reuters data.
“Our strong results are testament to our financial discipline, flexibility through evolving market conditions, and steadfast focus on a long-term growth strategy that targets value growth. value for our shareholders,” Aramco CEO Amin Nasser said in the statement.
Supercharged oil
Aramco benefits from rising oil prices in 2021, by international standards Brent Crude Oil rose above $80 per barrel by year-end, up about 50% over a 12-month period. The supply shortfall added to a host of complicating factors that led to great uncertainty for the energy and commodities complex, even before Russia invaded Ukraine.
He added: “Although economic conditions have improved significantly, the outlook remains uncertain due to various macroeconomic and geopolitical factors.
Aramco also announced a Q4 dividend of $18.8 billion, to be paid in the first quarter of 2022. The dividend is covered by an increase in free cash flow to $107.5 billion in 2021. , compared to $49.1 billion in 2020.
Aramco said it would propose to use $4 billion of retained earnings to pay stock bonuses to investors, subject to approval. According to the recommendation, for every 10 shares owned, shareholders will receive one bonus share. As a result, the total dividend for 2021 is $75 billion in cash, in addition to bonus stock.
Increase capital expenditure
The company also said it would invest to increase crude oil production capacity to 13 million bpd by 2027, expand liquid production to chemical production and look to increase gas production by more than 50%. in 2030.
Aramco also said it wants to achieve Scope 1 and Scope 2 net greenhouse gas emissions on its fully operated properties by 2050. Scope 1 refers to emissions directly from sources owned or controlled by the company, while Scope 2 includes indirect emissions from the generation of electricity purchased by the company.
Investment spending in 2021 is USD 31.9 billion, an increase of 18% compared to 2020, mainly driven by increased activities related to increased crude oil, Tanajib Gas Plant and drilling and development programs. develop. Aramco projects capital expenditures in 2022 at around $40-50 billion, and expects further growth until around the middle of the decade.
The numbers stand in stark contrast to the company’s 2020 earnings, which fell 44% year-over-year due to a drop in demand caused by the coronavirus pandemic.
Nasser at the time described Aramco’s fiscal year 2020 as one of the most “challenging” years in recent history.
