Saudi Aramco Reports ‘Record’ $161 Billion Profit for 2022

FILE PHOTO: Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
FILE PHOTO: Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
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Saudi Aramco Reports ‘Record’ $161 Billion Profit for 2022

FILE PHOTO: Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
FILE PHOTO: Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov

Saudi Aramco said on Sunday it achieved "record" profits totalling $161.1 billion last year, its highest annual profits as a listed company.

In a statement announcing 2022 results, Aramco said the achievements 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."

For his part, Aramco President & CEO Amin H. Nasser said the company 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," he added.

Nasser stressed that the company's 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.”

Aramco’s net income increased by 46.5% to a record $161.1 billion in 2022, compared to $110.0 billion in 2021. The increase in net income reflects stronger crude oil prices, higher volumes sold and improved margins for refined products. Q4 2022 net income is in line with analyst estimates, excluding certain non-cash items of around $3.3 billion.

Also, Free cash flow* reached a record $148.5 billion in 2022, compared to $107.5 billion in 2021.

In its statement, the company said it continues to emphasize a strong balance sheet and its gearing ratio at the end of 2022 was -7.9%, compared to 12.0% at the end of 2021.

Aramco 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 was 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 continues 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."

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. 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.

Compression projects at the Haradh and Hawiyah fields commenced commissioning activities and full capacity is expected to be reached in 2023. Construction at the Hawiyah Unayzah Gas Reservoir Storage, the first underground natural gas storage project in the Kingdom, is at an advanced stage and has commenced injection activities. The program is designed to provide up to 2.0 billion standard cubic feet per day of natural gas for reintroduction into the Kingdom’s Master Gas System by 2024.

Aramco announced its final investment decision to participate in the development of a major integrated refinery and petrochemical complex in northeast China. The project presents an opportunity for Aramco to supply up to 210,000 bpd of crude oil feedstock to the complex. The transaction is subject to certain closing conditions, including regulatory approvals.



Trump Tariffs Kick in, Spurring More Market Carnage as China Rejects ‘Bullying’ 

Containers are seen at the international cargo terminal at the port of Tokyo on April 9, 2025. (AFP)
Containers are seen at the international cargo terminal at the port of Tokyo on April 9, 2025. (AFP)
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Trump Tariffs Kick in, Spurring More Market Carnage as China Rejects ‘Bullying’ 

Containers are seen at the international cargo terminal at the port of Tokyo on April 9, 2025. (AFP)
Containers are seen at the international cargo terminal at the port of Tokyo on April 9, 2025. (AFP)

US President Donald Trump's "reciprocal" tariffs on dozens of countries took effect on Wednesday, including massive 104% duties on Chinese goods, deepening his global trade war and spurring more widespread selling across financial markets. 

Trump's punishing tariffs have shaken a global trading order that has persisted for decades, raised fears of recession and wiped trillions of dollars off the market value of major firms. 

Since Trump unveiled his tariffs last Wednesday, the S&P 500 has suffered its deepest loss since the benchmark's creation in the 1950s. It is now nearing a bear market, defined as 20% below its most recent high. 

Global benchmark bonds, assets perceived as relatively safe, were also caught up in the market turmoil on Wednesday, an unnerving turn towards forced selling that is sounding alarm bells for investors. 

European and US stock futures pointed to more pain ahead, following a grim session for most of Asia. Chinese stocks bucked the trend, however, as state support propped up the ailing market. 

Trump has shrugged off the market rout and offered investors mixed signals about whether the tariffs will remain in the long term, describing them as "permanent" but also boasting that they are pressuring other leaders to ask for negotiations. 

"We have a lot of countries coming in that want to make deals," he said at a White House event on Tuesday afternoon. He said at a later event that he expected China to pursue an agreement as well. 

Trump's administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week. 

The deputy prime minister of Vietnam, the low-cost Asian manufacturing hub hit with some of the highest duties globally, is set to talk with Trump's Treasury Secretary Scott Bessent later on Wednesday. 

The prospect of deals with other countries had pushed stock markets up earlier on Tuesday, but US stocks had ceded their gains by the end of the trading day. 

German Finance Minister Joerg Kukies said on Wednesday that Europe's largest economy is at risk of another recession as a result of the trade tensions. Investment bank JP Morgan estimates there is a 60% chance of the world economy entering recession by year-end. 

CHINA VOWS TO FIGHT 

Trump nearly doubled duties on Chinese imports, which had been set at 54% last week, in response to counter-tariffs that Beijing announced last week. China has vowed to fight what it views as blackmail. 

The country's top leaders plan to convene a meeting as early as Wednesday to discuss measures to boost the economy and stabilize the capital markets, Reuters exclusively reported. 

On Wednesday, China vowed to take resolute and effective measures to safeguard its rights and interests. 

"The US continues to abuse tariffs to pressure China, China firmly opposes this and will never accept this kind of bullying," Chinese Foreign Ministry spokesperson Lin Jian told a news conference. 

Other nations are funneling support to key export sectors with South Korea announcing a raft of emergency measures for automakers, including tax cuts and subsidies. 

Central banks in New Zealand and India cut rates on Wednesday in what could presage a broader move by policymakers to try and cushion the tariff hit to their economies. 

But some economists have warned that ultimately US consumers are likely to bear the brunt of the trade war, facing higher prices on everything from sneakers to beverages. 

Danish luxury stereo maker Bang & Olufsen said on Wednesday it would raise prices on selected products next month to account for the tariffs and other factors. 

Nearly three-quarters of Americans expect the prices of everyday items to rise in the next six months, a new Reuters/Ipsos poll found. 

The full effects of Wednesday's tariffs may not be felt for some time, as any goods already in transit as of midnight will be exempt from the new levies as long as they arrive in the US by May 27. 

Trump's earlier across-the-board 10% tariffs on all imports from many countries began on Saturday. 

The latest round of duties, which took effect at 12:01 a.m. ET (0401 GMT), is aimed at countries that are "ripping off" the US, according to Trump. 

That list includes many of the United States' closest allies, including the European Union, which was hit with a 20% tariff as well as industry-specific duties. The 27-member bloc will vote on initial counter-measures later on Wednesday. 

Trump has said the tariffs are a response to barriers put on US goods and are needed to fix America's trade imbalances. He has also accused countries, including Japan, of devaluing their currencies to gain a trade advantage, something Tokyo denies. 

Japan's finance minister on Wednesday said trade negotiations with Washington could include foreign exchange rates. 

Trump has signaled he may not be finished on tariffs. 

In remarks to Republican lawmakers on Tuesday evening, he said he would soon announce "major" tariffs on pharmaceutical imports, one of a handful of categories of goods that have been exempted from the new taxes.