Saudi Arabian oil giant Aramco posted a more than doubling in year-on-year net profit to $110 billion on Sunday.
Higher crude oil prices, stronger refining and chemicals margins, and the consolidation of its chemicals business, SABIC, contributed to a 124% increase in the net income of Aramco in the year 2021.
Net income for the full year was expected to be $109.7 billion, and the numbers were in line with expectations. According to the data, shares rose 4% on Sunday.
Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy, which targets value growth for our shareholders, according to the results release.
By the end of the year, international benchmark oil prices were above $80 a barrel, up 50% from the previous year. The energy and commodity complex had a number of factors driving uncertainty before the invasion of Ukraine.
Although economic conditions have improved considerably, the outlook remains uncertain due to various macro-economic and geopolitical factors.
The fourth quarter dividend of $18.8 billion will be paid in the first quarter of 2022. Free-cash flow will rise to $107 billion in 2021, compared to $49.1 billion in 2020.
$4 billion in retained earnings could be used to pay bonus shares to investors, subject to approval. The recommendation would give shareholders one bonus share for every 10 shares they own. The total dividend for the year is $75 billion in cash and bonus shares.
The company said it would increase crude oil production capacity to 13 million barrels per day by 2027, expand liquid to chemical production, and increase gas production by more than 50%.
Scope 1 refers to direct emissions from sources owned or controlled by the company, while Scope 2 covers indirect emissions.
The capital expenditure for the year was $31.9 billion, an increase of 18% from the previous year, primarily driven by increased activities in relation to crude oil increments, the Tanajib Gas Plant and development drilling programs. Capital expenditure is expected to grow to around $50 billion by the middle of the decade.
The company's earnings plummeted in 2020 due to the demand collapse brought on by the coronaviruses.
The 2020 financial year was one of the most challenging in recent history.
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