Saudi Aramco says annual profit more than doubled in 2021; plans to ramp up investment to boost production, Business & Economy News

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As part of a strategy to boost upstream business in an attempt to achieve energy security, Saudi Aramco has said it will increase crude and gas production over the next few years. 

As per reports, Aramco has also planned to expand its liquids to chemicals capacity and is targeting investment in renewable energy and nature-based solutions. 

As quoted by Upstream, Amin Nasser, who is the President and CEO of Aramco said: “Our investment plan aims to tap into rising long-term demand for reliable, affordable and ever more secure and sustainable energy.” 

He added, “We recognise that energy security is paramount for billions of people around the world, which is why we continue to make progress on increasing our crude oil production capacity, executing our gas expansion program and increasing our liquids to chemicals capacity.” 

On Sunday (March 20), Aramco posted a 124 per cent jump in 2021 net profit due to higher crude prices, as global economic growth recovered from the pandemic induced 2020 downturn. 

The company said in a statement, “Aramco’s net income increased by 124% to $110.0 billion in 2021, compared to $49.0 billion in 2020.” 

Aramco, Saudi Arabia’s cash cow, achieved a net income of $88.2 billion in 2019 before the coronavirus (COVID-19) pandemic hit global markets, resulting in huge losses for the oil and aviation sectors, among others. 

The announcement came hours after Yemen’s Huthi rebels, against whom the kingdom is leading a military coalition, targeted an oil facility in southern Saudi Arabia and at a time of increased crude market volatility due to Russia’s invasion of Ukraine. 

Aramco floated 1.7 per cent of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world’s biggest initial public offering. 

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