Saudi Aramco said its 2021 net profit more than doubled to $110 billion, in what amounts to a significant boost to the Kingdom’s economy as it seeks to continue ahead with Vision 2030 economic and social reforms.
Aramco on Sunday pledged to hike investments – largely in upstream development – by around 50% this year as it reported a doubling in 2021 profits, according to Reuters. The company said it would boost its capital expenditure (capex) to $40-50 billion this year, with further growth expected until around the middle of the decade. Capex was $31.9 billion last year, up 18% from 2020 – indicating an increase of about 50% for this year at the middle of the guidance range, per Reuters.
“Our investment plan aims to tap into rising long-term demand for reliable, affordable, and ever more secure and sustainable energy,” CEO Amin Nasser said.
Aramco’s announced growth strategy which in its Upstream business “includes continuing to raise crude oil Maximum Sustainable Capacity (MSC) to 13 million barrels per day (mmbpd) by 2027, and potentially increasing gas production by more than 50% by 2030,” the company said.
In its Downstream business, Aramco plans to expand its liquids to chemicals capacity to up to 4 mmbpd. Aramco also intends to develop a significant hydrogen export capability and become a global leader in Carbon Capture and Storage (CCS).
“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,” Nasser added.
