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Compared to the $110 billion recorded in 2021, the Saudi Arabian oil giant’s net income took a significant leap by growing over 46% YoY in 2022.
The Saudi Arabian Oil Group, also known as Aramco, announced its largest annual profit in 2022. The state-controlled oil giant posted a record net income of $161.1 billion for the last year, representing a 46.5% surge YoY. Aramco reaching an all-time high in 2022 profit can be linked to its impressive quarterly performance throughout the year. In Q1 2022, the company’s net profit increased by 80%, marking a new quarterly earnings record for the oil giant. At the same time, the Q1 income was its largest since its public debut. Aramco reached $39.5 billion in net profit during the first quarter amid a surge in global oil prices. CEO Amin Nasser noted that the company is committed to providing “reliable, affordable, and increasingly sustainable” energy.
Aramco also reported a 90% surge in Q2 2022 net income, from $25.5 billion in Q2 2021 to $48.4 billion. Nasser said the impressive result, which surpassed analyst expectations, was triggered by increased demand. During the first six months of 2022, Aramco’s net income popped to $87.9 billion. According to the results released in November, the oil company also exceeded revenue expectations in Q3 2022. The quarterly net income was $42.4 billion, gaining 39% YoY. The quarterly increases contributed to the record annual profit for Saudi Arabia, which is also the largest ever achieved by an oil and gas company.
Aramco Posts Record Profit for 2022
Compared to the $110 billion recorded in 2021, the Saudi Arabian oil giant’s net income took a significant leap by growing over 46% YoY in 2022. The increasing oil and gas prices through the past year improved margins for refined products, and the high sales volume contributed to a significant 2022 profit for Aramco. In addition, Aramco’s net profit for 2022 is about 3X better than ExxonMobil’s results for the same period. ExxonMobil (NYSE: XOM) said in January that its profit for 2022 was $56 billion. Nasser said, “this is probably the highest net income ever recorded in the corporate world.”
The multiple sanctions on Russia due to its invasion of Ukraine caused oil and gas prices to increase as access to Moscow’s supplies became limited. The energy prices surged at the beginning of the last year but have slowed down by about 25% YoY. Commenting on the current status, the Aramco chief commented:
“We are cautiously optimistic. If you consider China opening up, the pickup in jet fuels and the very limited spare capacity, we are cautiously optimistic in the short to mid-tem [that] markets will remain tightly balanced.”
The company plans to pay its Q4 2022 dividend in this year’s first quarter and issue bonuses to eligible shareholders. Chief financial officer Ziad Al-Murshed noted that Aramco is financially capable of surviving “through the ups and downs of the cycle.”