Skip to content Skip to Search
Skip navigation

Aramco posts record earnings and predicts robust oil demand to 2030

Reuters / Ahmed Jadallah
Saudi Aramco CEO expects oil demand to continue to grow for the rest of the decade, despite downward economic pressures
  • 90 percent year-on-year increase in net income
  • Plans to develop more lower-carbon solutions

The Saudi Arabian Oil Company, better known as Aramco, has set a new quarterly earnings record since its initial public offering in 2019, primarily driven by higher crude oil prices and volumes sold and higher refining margins.

The energy giant posted a 90 percent year-on-year increase in net income and declared a dividend of $18.8 billion to be paid in the third quarter.

Aramco president and CEO Amin H Nasser said: “Our record second-quarter results reflect increasing demand for our products — particularly as a low-cost producer with one of the lowest upstream carbon intensities in the industry.

“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential — both to help ensure markets remain well supplied and to facilitate an orderly energy transition.

“In fact, we expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts.

While the security of energy supplies must be safeguarded, climate goals remain critical, Nasser added, which is why Aramco plans to increase production from multiple energy sources, including oil and gas, as well as renewables and blue hydrogen.

He said: “We are progressing the largest capital program in our history, and our approach is to invest in the reliable energy and petrochemicals that the world needs, while developing lower-carbon solutions that can contribute to the broader energy transition.”

Aramco said it achieved a record quarterly and half-year net income of $48.4 billion in the second quarter and $87.9 billion in the first half of 2022, compared to $25.5 billion and $47.2 billion, respectively, for the same periods in 2021. 

Cash flow increased by 53 percent to $34.6 billion in the second quarter and was $65.2 billion during the first half of 2022, mainly driven by higher cash from operating activities.

Return on average capital employed almost doubled to 31.3 percent, reflecting stronger crude oil prices and volumes sold and improved downstream margins, the company statement added.

Capital expenditure increased by 25 percent to $9.4 billion in the second quarter and by 8 percent to $16.9 billion for the first half of 2022 as Aramco continued to invest in expanding its chemicals business and developing prospects in low-carbon businesses.

The company also announced average total hydrocarbon production of 13.6 million barrels of oil equivalent per day in the second quarter while its gas expansion program is progressing towards increasing production with initial construction and design of the Jafurah Gas Plant ongoing. 

The facility has a planned processing capacity of 3.1 billion standard cubic feet per day (bscfd) of raw gas, expected to be completed in two phases by 2027. 

Meanwhile, construction of the Hawiyah Unayzah Gas Reservoir Storage has reached an advanced stage, is expected to provide up to 2 bscfd of natural gas to be injected into the master gas system by 2024.