The oil giant Saudi Aramco announced this Sunday that it has posted a profit of $ 161,000 million (151,000 million euros) in 2022, thanks to the increase in crude oil prices, a record result for a company crucial to the Saudi economy. Amnesty International called the company’s profits “outrageous”.
In its annual report, the company, formally known as Saudi Arabian Oil Co., underlined that its profits represented “the largest ever”, due to the rise in energy prices after the Russian invasion of Ukraine on February 24, 2022, which imposed sanctions and the restriction of Russian oil and gas sales in Western markets.
In the document, Aramco said it hoped to increase production to capitalize on market demand, which would allow it to fund Saudi Crown Prince Mohammed bin Salman’s plans to develop futuristic cityscapes to rid Saudi Arabia of oil.
The plans come despite growing international concerns about burning fossil fuels accelerating climate change.
“As we expect oil and gas to remain essential for the foreseeable future, the risks of underinvestment in our industry are real — including contributions to higher energy prices,” Saudi Aramco executive chairman Amin H. Nasser said in a statement.
Profit increased by 46.5% compared to the company’s 2021 results of $110,000 million (103,200 million euros).
Aramco made $49 billion (€46 million) in 2020 as the world faced the worst lockdown of the Covid-19 pandemic, travel disruptions and temporarily negative oil prices.
Aramco estimated its oil production in 2022 at about 11.5 million barrels per day and indicated that it wants to reach 13 million barrels per day in 2027. To increase this production, it expects to spend up to 55,000 million dollars (51,600 million euros) on capital projects this year.
Aramco also announced a dividend of $19,500 million (18,300 million euros) for the fourth quarter of 2022, payable in the first quarter of this year.
Benchmark Brent crude is now trading around $82 a barrel, though prices peaked at over $120 a barrel in June.
Aramco, whose fortune depends on global energy prices, also announced a record profit of 42,400 million dollars (39,780 million euros) in the third quarter of 2022 due to this price increase.
Amnesty International calls Saudi Aramco’s profits outrageous
“It is outrageous that a company makes more than €151 billion in profits in one year from the sale of fossil fuels, the main cause of the climate crisis,” Agnès Callamard, secretary general of Amnesty International, said in a statement.
For Callamard, “more shocking” is the fact that profits have been built “during a global cost-of-living crisis and aided by the rise in energy prices due to the war started by Russia with its invasion of Ukraine,” at 24 February. from 2023.
Regarding the context in which these gains were made, Callamard said the time had come for Saudi Arabia “to act in the best interest of humanity and support the phase-out of the fossil fuel industry, which is essential to prevent further climate damage “.
The oil and gas produced by Aramco have been estimated to have been responsible for more than 4% of global greenhouse gas emissions since 1965, and responsible for about 4.8% of all emissions, according to one study. oil and gas company, AI said.
Aramco often claims that its corporate emissions are “low” compared to other major oil producers.
“But that’s insignificant when it comes to millions of barrels per day [a Aramco] products are still being consumed,” AI defended.
For this reason, Callamard called for Aramco’s profits to be funneled to “benefit the planet and its people” as they could fund a “just and human rights based transition to renewable energy”.
The Saudi government and the Public Investment Fund (PIF), a sovereign wealth fund, own more than 98% of Aramco, making the company a major source of revenue, wealth and influence for the kingdom through the dividends and taxes it pays.
“As we expect oil and gas to remain essential for the foreseeable future, the risks of underinvestment in our industry are real — including contributions to higher energy prices,” Saudi Aramco executive chairman Amin H. Nasser said in a statement.
Source: DN
