Skip to content Skip to Search
Skip navigation

Aramco posts record earnings and predicts robust oil demand to 2030

Reuters / Ahmed Jadallah
Saudi Arabia raised prices for the flagship Arab light crude it sells to Asia for a third month in May
  • 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.

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]