Saudi Aramco reported a net profit of $161.1 billion for 2022, up from $110 billion a year earlier and a record net earnings result for the company, which joins every other big oil producer in the world to benefit from higher oil prices.
The company also boasted a record cash flow from operating activities, at $186.2 billion, and a record free cash flow, at $148.5 billion.
In comments on the company's results, chief executive Amin Nasser noted that he expected oil and gas demand across the world to remain robust, fueling the future growth of the company. He also cautioned, however, that global underinvestment in new production threatened the security of supply.
"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," Nasser said, after saying that Aramco was working on boosting both its production capacity and "capability across the supply chain".
Aramco's chief executive has been repeatedly warning about underinvestment in new oil and gas output and the adverse effect this underinvestment will eventually come to have on global energy security, tightening the availability of oil and gas and making them less affordable.
Speaking to media at the release of the company's financial report, Nasser noted that Aramco's spare capacity remained at 2 million barrels per day. Demand, notably from China, on the other hand, was climbing higher. Even so, the executive said there was reason for some guarded optimism.
"If you considered China opening up and a pick up in jet fuels and very limited spare capacity, we are talking 2 million barrels, so as I said we are cautiously optimistic in the short to midterm and the market will remain tightly balanced," Nasser said, as quoted by Reuters.
By Irina Slav for Oilprice.com
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