The sharp rise in Aramco profits came as a result of a significant rise in oil prices in the recent period
The oil giant Saudi Aramco achieved profits that exceeded market expectations in 2021, recording more than double the profits it achieved at the end of the previous year.
The total annual profits of the Saudi oil giant amounted to 110 billion dollars, which is due to the sharp rises in global oil prices in the recent period due to factors related to the production policy of the OPEC + group, supply chain disruptions, the war between Russia and Ukraine, in addition to the recovery of the global economy from the Corona virus crisis. .
Aramco’s net profit rose by about 120 percent at the end of last year due to the sharp rise in oil prices.
The announcement of the giant company’s profits came hours after the Houthi group in Yemen – against which Saudi Arabia leads a military coalition in Yemen – targeted several Saudi sites, including Aramco’s production sites, along the Saudi-Yemeni border with drone attacks.
The country’s largest state oil company, Saudi Arabia, did not reveal whether the Houthi attacks had damaged its sites or not.
A statement issued by the Saudi oil giant said: “Aramco’s net income increased by 124 percent to $110 billion in 2021, compared to $49 billion in 2020.”
picture released, AFP
Aramco’s net income in 2019 was $88.2 billion, before the Corona virus hit global markets, causing losses in the oil and aviation sectors, among many other economic sectors affected by the epidemic.
Global oil prices have made a sharp recovery from the lowest levels they fell in 2020, and reached unprecedented levels since 2014 as a result of a global supply deficit and the Russian invasion of Ukraine.
crown jewel
The Saudi state oil company floated 1.7% of its shares on the Saudi stock exchange in December 2019, helping it raise $29.4 billion in the world’s largest initial public offering.
Amin Nasser, Aramco CEO, said: “Our strong results are a testament to our financial discipline, flexibility with which we handled the situation in volatile market conditions, and focus on a long-term growth strategy.”
He added, “Despite the significant improvement in economic conditions, uncertainty still shrouds the future outlook due to the presence of several economic and geopolitical factors on the scene.”
picture released, Archyde.com
Aramco announced an increase in its profits amid reports of Houthi attacks on Saudi sites, including its affiliates
He continued, “However, our investment plan aims to take advantage of the long-term growing demand for reliable energy products at a reasonable cost, while providing greater safety during their use, in addition to the sustainability of their sources.”
“We realize the importance of energy security for billions of people, which is why we continue to make progress in increasing our crude oil production capabilities, implementing a program to expand natural gas production and increasing the production capacity of liquids and chemicals,” Nasser said.
Since the inauguration of Prince Mohammed bin Salman as crown prince in 2017, Saudi Arabia has been striving to diversify sources of income within the framework of its economy, which relies mainly on oil as a source to provide the country’s financing requirements.
And last February, Saudi Arabia – one of the world’s largest oil exporters – transferred about 4.00 percent, or $80 billion, of Aramco’s value to the Saudi Public Investment Fund.
This transfer is an indication that the Saudi government is trying to add greater openness to the market, the giant company, which is the jewel in the crown of the Saudi economy and the largest company in the Arab region.
The Saudi crown prince said last year that Aramco was in talks aimed at reaching a deal to sell 1.00 percent of its shares to a foreign oil giant.
Brent crude oil futures concluded last week’s trading in the financial markets above $100 a barrel, which is due to several factors, foremost of which is the Russian invasion of Ukraine.
Russia occupies the first place in the world in the production of natural gas, in addition to being the second largest oil producer in the world, which makes the sanctions imposed by the West on Moscow one of the reasons that raise fears of a decline in Russia’s share of the global supply of oil, and then global oil prices continue to rise Boarding.
The oil-rich Gulf countries continue to resist the pressures exerted by the West to increase their oil production to stabilize prices, which is what these countries are doing in order to fulfill their obligations towards the OPEC + group, which is an alliance between the OPEC countries and the largest oil producers in the group without Members of the organization are led by Saudi Arabia and Russia.