Aramco, the world's largest oil company based in Saudi Arabia, declared a record annual net profit of $161.1 billion for 2022 on Sunday. This is a rise of 46% from the previous year due to higher energy prices, bigger sales volumes, and improved margins for refined goods.

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The gains come after comparable reports from worldwide competitors BP, Shell, Exxon Mobil, and Chevron in February, most of which reported record profits for the previous year.Oil prices fluctuated significantly in 2022, rising on geopolitical concerns throughout the conflict in Ukraine and falling on decreased demand from China, the world's major importer, and concerns about a slowdown in the economy.

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“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,” Aramco’s chief executive Amin Nasser said in the results statement.

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To address those challenges, the company is not only focused on expanding oil, gas and chemicals production, but also investing in new lower-carbon technologies with potential to achieve additional emission reductions, Nasser said.Aramco’s capital expenditure rose 18% to $37.6 billion in 2022 and the company said it expects this year’s spending to be around $45.0 billion to $55.0 billion including external investments.

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Aramco declared a dividend of $19.5 billion for the fourth quarter, an increase of 4% from the previous quarter.Its board also recommended to issue bonus shares, with eligible shareholders receiving one share for every 10 shares owned.Free cash flow reached a record of $148.5 billion in 2022, compared to $107.5 billion in 2021.

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