announced The Saudi Arabian Oil Company “Saudi Aramco”Today, Sunday, it announced the financial results for the year 2021, achieving a jump in net profit by 124.4%.
The company said that its net profit amounted to 412.4 billion riyals last year, compared to 183.76 billion riyals during 2020, which represents an increase of more than two times.
This increase primarily reflects the impact of higher crude oil prices, the consolidation of SABIC’s full-year business results, and the significant increase in profit margins from the refining and chemicals business.
The company’s revenues rose to 1.3469 trillion riyals, compared to revenues of 768.11 billion riyals during 2020, which represents an increase of 75.356%. Other income related to sales amounted to 154.83 billion riyals, compared to 93.98 billion riyals in 2020.
free shares
The company announced the distribution of cash dividends to shareholders for the fourth quarter of 2021, amounting to 70.3 billion riyals ($18.8 billion).
The company added that these dividends will be added to the board’s recommendation to capitalize 15 billion riyals ($4 billion) of retained earnings, and one share for every ten shares.
She explained that in the event of obtaining regulatory approvals and the company’s extraordinary general assembly to issue and distribute these shares, the total cash dividends for the fiscal year 2021 will be worth 281 billion riyals, in addition to granting shares.
This comes within the company’s objectives to maximize total returns to shareholders by distributing sustainable and increasing profits in line with future aspirations and growth in free cash flow, and creating higher value in the long term by investing in the many opportunities available to the company.
Commenting on the business results, Saudi Aramco President and CEO Amin Nasser said that the company’s strong results demonstrate “our firm focus on a long-term growth strategy, which aims to enhance value for our shareholders, while at the same time emphasizing our financial discipline and flexibility in dealing with changing market conditions.
volatile market
He stated that the current outlook for the oil market appears volatile, but our investment plans aim to take advantage of the long-term growing demand for reliable, sustainable and affordable energy. This includes increasing our maximum sustainable production capacity of crude oil, implementing our gas production expansion program, and expanding our liquids-to-chemicals activities.
He continued: “In Saudi Aramco, we realize that environmental sustainability and energy security are critical, and we continue our investments in carbon capture and storage, renewable energy sources, and low-carbon hydrogen production, which support the transformation of the energy sector globally, and contribute to achieving our ambition to reach zero neutrality. in carbon emissions.
Debts
The company explained that its debts fell to 14.2% last year, compared to 23% at the end of 2020.
The company’s free cash flows amounted to 403 billion riyals last year, compared to 184.3 billion riyals in 2020.
Capital expenditures in 2021 amounted to about 119.6 billion riyals, an increase of 18% over 2020.
Hamad Al-Olayan, a financial market analyst, said that Aramco’s business results exceeded expectations, as well as the performance of its global peers.
Speaking to Al Arabiya, he added that Aramco is currently on the top of the most profitable companies around the world in 2021, and this is not surprising because the company is committed to the supply process to its customers by 99%, in addition to the good management that helped push Aramco to these levels.
He stated that 2022 will also be an exceptional year for Aramco, with the increase in oil since the beginning of the year. He continued, “We will see a big change in profitability, profitability and returns will increase, because the company stated that the rise of Brent above $ 100, will increase the franchise fee between 50 to 80%, and this will be reflected on the shareholder by 20% and the state will benefit by 80%.”