Saudi’s Aramco nets world’s highest corporate income, pays shareholders $19.5bn

Saudi Arabia’s state-owned oil corporation, Aramco, generated $161.1 billion as net profit in 2022.

The figure was 46 percent higher than the profit reported by Aramco in 2021, and a record high for the state-run corporation.

Aramco’s Chief Executive Officer, Amin Nasser, said on a Sunday earnings call that the figure was probably the “highest net income ever recorded in the corporate world.”

In a report released on Sunday, the company announced a demand surge, leading to higher volume sales as well as improved margins for refined products.

As a result of the net profit growth, dividends to shareholders peaked at $19.5 billion for the fourth quarter period.

This, according to Aramco, was a four percent increase compared to the previous quarter.

The firm also revealed that bonus shares of one share for every 10 shares owned has been proposed for eligible shareholders.

READ ALSO: Saudi Aramco raises $25.6 billion in world’s largest IPO

The record earnings increased Aramco’s free cash flow to a record of $148.5 billion in 2022, surpassing the $107.5 billion posted in 2021.

The $161.1 billion net profit is far above Aramco’s $37.6 billion capital expenditure for the same period.

The firm added that expenses rose by 18 percent last year and projected that expenditure for 2023 would fall between $45.0 billion to $55.0 billion.

“Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our industry are real – including contributing to higher energy prices,” Nasser said.

Part of the investment will lead to the expansion of oil and gas, as well as chemicals production.

Aramco is also aiming to achieve additional emission reductions, and according to Nasser, this will result in new lower-carbon technologies investment.

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