Saudi oil giant’s profits down from 2022 record

Saudi oil giant Aramco has reported a $121 billion (£94bn) profit for last year, down from its 2022 record due to lower energy prices.

Aramco made the announcement in a filing in Riyadh’s Tadawul stock market. It had reported a $161bn (£125bn) profit in 2022, believed to be the largest ever reported by a publicly traded company.

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

Aramco reported overall revenue of $440bn (£342bn) last year, down from $535bn (£416bn) in 2022. Chief executive Amin H Nasser said in a statement: “Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds.”

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 a barrel yesterday.

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 $500bn (£389bn) futuristic desert city, called Neom, and other projects.

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