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Saudi oil giant Aramco’s profits drop to $121 billion after 2022 record

Aramco reported the largest-ever profit by a publicly traded company in 2022

Via AP news wire
Monday 11 March 2024 08:17 GMT
File imaghe: Saudi Arabia's state-owned oil company Aramco and stock market officials celebrate the debut of Aramco's initial public offering on the Riyadh Stock Market, in Riyadh in 2019.
File imaghe: Saudi Arabia's state-owned oil company Aramco and stock market officials celebrate the debut of Aramco's initial public offering on the Riyadh Stock Market, in Riyadh in 2019. (AP)

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Saudi oil giant Aramco reported a $121 billion profit last year, down from its 2022 record due to lower energy prices.

Aramco made the announcement on Sunday in a filing in Riyadh's Tadawul stock market.

It had reported a $161 billion profit in 2022, likely the largest ever reported by a publicly traded company.

“The decrease mainly reflects the impact of lower crude oil prices and lower volumes sold, and weakening refining and chemicals margins,” the company said in its filing.

The energy giant had planned a conference call on Monday to discuss its results.

Aramco reported overall revenue of 440 billion dollars (£342 billion) last year, down from 535 billion dollars (£416 billion) in 2022.

“Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds,” Aramco chief executive Amin H Nasser in a statement.

Aramco, formally known as the Saudi Arabian Oil Co, put its output at 12.8 million barrels of oil a day. The company has been ordered by the Saudi government to keep its production there despite earlier plans to increase output.

Saudi Arabia, a leader in the Opec cartel, has allied with Russia and others outside the group to try to keep production down to boost global oil prices. Benchmark Brent crude was trading below 82 dollars a barrel on Sunday.

Saudi Arabia’s vast oil resources, located close to the surface of its desert expanse, make it one of the world’s least expensive places to produce crude.

Crown Prince Mohammed bin Salman hopes to use the oil wealth to move the kingdom away from oil sales, such as with his planned 500 billion dollar (£389 billion) futuristic desert city, called Neom, and other projects.

Meanwhile, activists criticised the profits amid global concerns about the burning of fossil fuels accelerating climate crisis.

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