- Aramco made a historic splash in 2022, raking in a record-breaking $161 billion net profit – a 46% leap from the prior year and the highest annual profit ever achieved by an oil and gas company. The profits were buoyed by higher energy prices, more products sold, and higher margins on refined goods. Profits reported by international peers BP, Shell, Exxon Mobil, and Chevron for last year show similar results to those seen in February, with most companies posting record gains.
- Aramco announced a 4% increase in its fourth-quarter dividend to $19.5 billion, to be paid in the first quarter of 2023, and declared they would award bonus shares to qualifying shareholders. The firm reaffirmed its commitment to investing in order to reach a maximum production capacity of 13 million barrels a day by 2027.
Why it matters
At the start of last year, oil and gas prices rose sharply due to sanctions on Russia for its incursion into Ukraine that limited access to Moscow's seaborne crude and oil products. Since then, prices have dropped more than 25% on the year, as inflation and increasing interest rates overshadowed a more positive demand outlook from China.
