Amnesty International has criticized the “shocking” amount earned annually through the sale of fossil fuels.
With a surge in energy prices and a growing global demand, Saudi Aramco, primarily owned by the state and listed on the Riyadh stock exchange, has reported a record-breaking annual profit of $161 billion (£134 billion) in 2022, the highest ever recorded by an oil and gas company. This translates to a 46% increase in profits from the previous year, and the company’s profits have surpassed the combined bumper results recently reported by Shell, BP, Exxon, and Chevron.
According to Amin Nasser, the CEO of Saudi Aramco, which is listed on the Riyadh stock exchange, the company achieved a record-breaking financial performance in 2022, thanks to the strengthening of oil prices due to the growing global demand.
Saudi Aramco, which is currently the second most valuable publicly listed company in the world, right behind Apple, attributed its financial success to the combination of stronger crude oil prices, higher sales volumes, and improved margins for refined products. Despite the fact that Brent crude oil prices have fallen back to $82 per barrel from $120 per barrel due to Russia’s invasion of Ukraine, the company still plans to invest in increasing its maximum potential production capacity to 13 million barrels per day by 2027. Saudi Aramco has confirmed that its capital expenditure rose by 18% to $37.6 billion in the previous year and is expected to increase to between $45 billion and $55 billion in the forthcoming years.
According to Nasser, their goal is not solely to increase production of oil, gas, and chemicals, but also to invest in new technologies that are less carbon-intensive and have the potential to reduce emissions in their own operations and for their product end-users.
Amnesty International described Saudi Aramco’s profits as “shocking” and suggested that they should be utilized to finance a transition to renewable energy that is based on human rights principles.
