Ukraine crisis helps Saudi oil giant to £134bn profit record

OIL giant Saudi Aramco yesterday reported a profit of £134billion last year – a record for any publicly-listed company in history.

The vast profits by the state-owned firm, known formally as the Saudi Arabian Oil Company, follows energy prices rising following Russia‘s invasion of Ukraine in February 2022.

Sanctions subsequently limited the sale of Moscow’s oil and natural gas in western markets, leaving them at the mercy of Middle Eastern supplies.

The sky-high oil prices paid last year have been the main contributer to the cost of living crisis, not only in Britain but around the world.

Higher transport and general energy costs mean consumers are paying more for everything from food to clothing.

As well as driving up inflation worldwide, the high oil prices have strained relations between the United States and the kingdom of Saudi Arabia, which owns 95 per cent of Aramco shares.

President Joe Biden has already warned the capital Riyadh that ‘there’s

‘There’s going to be consequences’

going to be some consequences for what they’ve done’ in terms of oil prices. Profits rose 4 .5 per cent last year when compared with the 2021 results, which were already close to a global corporate record. Aramco’s colossal earnings follow record profits declared by other oil giants in 2022.

Britain’s Shell and BP announced profits of £32billion and £23billion respectively, while the figure was £4 billion for US firm ExxonMobil.

But Saudi Aramco’s earnings take it into another sphere altogether, beyond any sum made in a single year by the likes of Apple or Vodafone. It comfortably beats the previous record for a publicly-listed company – the £100billion profit also made by Aramco in 2018.

The bonanza profits across the sector have renewed calls in Britain for a fresh windfall tax on energy giants, to help ease the burden for struggling households.