The Saudi Arabian Oil Company (Aramco) has reported the highest ever annual profit of US$161.1 billion in 2022.

Aramco’s net income increased by 46.5% to a record $161.1 billion in 2022, compared to $110 billion in 2021. The increase in net income reflects stronger crude oil prices, higher volumes sold and improved margins for refined products.

Free cash flow also reached a record $148.5 billion in 2022, compared with $107.5 billion in 2021. Aramco also declared a fourth quarter dividend of $19.5 billion, to be paid in the first quarter of 2023.

Capital expenditure in 2022 was $37.6 billion, an increase of 18 % from 2021. Aramco expects 2023 capital expenditure to be approximately $45 billion to $55.0 billion including external investments, with capex increasing until around the middle of the decade.

Aramco also completed an energy infrastructure deal in February 2022 resulting in a consortium of investors, led by BlackRock Real Assets and Hassana Investment Company, acquiring a 49% stake in a newly formed subsidiary, Aramco Gas Pipelines Company (AGPC), for $15.5 billion.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said: “Aramco delivered record financial performance in 2022, as oil prices strengthened due to increased demand around the world. We also continued to focus on our long-term strategy, building both capacity and capability across the value chain with the aim of addressing energy security and sustainability.

“Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our industry are real — including contributing to higher energy prices. To leverage our unique advantages at scale and be part of the global solution, Aramco has embarked on the largest capital spending program in its history, and last year our capex rose by 18.0% to reach $37.6 billion.

“Our focus is not only on expanding oil, gas and chemicals production, but also investing in new lower-carbon technologies with potential to achieve additional emission reductions — in our own operations and for end users of our products.”