Saudi Aramco’s full-year profit more than doubles on soaring oil prices

Saudi Arabian oil giant Aramco reported blowout full-year earnings on Sunday, posting a more than doubling in year-on-year net profit to $110 billion.

Aramco’s 2021 net income increased by 124% to $110 billion in 2021, compared to $49 billion in 2020, citing higher crude oil prices, stronger refining and chemicals margins, and the consolidation of its chemicals business, SABIC’s, full-year results. 

The numbers were in line with expectations, with analysts surveyed by Reuters forecasting net income of $109.7 billion for the full year. Aramco shares on the Saudi Tadawul Exchange rose almost 4% in Sunday trading after the result.

Long-term Growth Strategy

“Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy, which targets value growth for our shareholders,” Aramco CEO Amin Nasser said in the results release.

Surging oil

Aramco benefitted from surging oil prices during 2021, with international benchmark Brent crude rising above $80 a barrel by the end of the year, up roughly 50% for the 12-month period. Supply shortages added to a complex slew of factors driving major uncertainty across the energy and commodity complex, even before Russia’s invasion of Ukraine.

Biggest Supply Crisis In Decades

 “Although economic conditions have improved considerably, the outlook remains uncertain due to various macro-economic and geopolitical factors,” he added. It comes after the IEA warned that the oil market was heading for its “biggest supply crisis in decades” as Russian sanctions hit and buyers shun its exports.

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