Aramco, also known as the Saudi Arabian Oil Co., announced Sunday its net profit doubled last year as global growth turned the corner from the coronavirus downturn.
Regarded as the crown jewel of Saudi Arabia’s oil-dependent economy, its success comes as one of the world’s largest producers of gas and one of the biggest oil producers, Russia, is grappling with mounting Western sanctions.
Renewed anxieties about global supply shortages, soaring oil prices and a recovery in fuel demand from the pandemic are predicted to combine in coming months to help drive prices upwards again.
“Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy,” Aramco president and CEO Amin Nasser said, acknowledging also that “economic conditions have improved considerably.”
AFP reports Nasser cautioned the company’s outlook remained uncertain due in part to “geopolitical factors” and, in an allusion to the effect of the recent price spikes on consumers, also noted that “energy security is paramount for billions of people.”
“We (therefore) continue to make progress on increasing our crude oil production capacity, executing our gas expansion program and increasing our liquids to chemicals capacity,” Nasser added.
Oil-rich Gulf countries, including Saudi Arabia, have so far resisted pressure from Western allies to raise oil output to rein in prices hit by Russia’s invasion of Ukraine, stressing their commitment to the OPEC+ alliance of oil producers, which Riyadh and Moscow lead.
Saudi Aramco’s statement said capital expenditure in 2021 was up 18 percent on 2020 at $31.9 billion, a figure it expects to rise to approximately $40-50 billion this year, before further growth.
The international oil benchmark Brent crude hovered over $107 on Sunday after nearly touching a peak of $140 earlier this month, AP reports.