Saudi Aramco to invest further as profits surge

Saudi’s oil giant Aramco reported on Sunday a net income of US $110.0 billion and pledged further investments this year.

The oil giant said in its growth strategy to raise crude oil maximum sustainable capacity (MSC) to 13 million barrels per day (mmbpd) by 2027, and potentially increase gas production by more than 50 percent by 2030.

Aramco also said it will boost its capital expenditure (capex) to $40-50 billion in 2022, with further growth expected until around the middle of this decade.  

"Global spare capacity is around 2 million barrels per day, which is not significant enough to deal with these geopolitical events and what is happening in the market," Aramco's CEO Amin Nasser said in a media call.

The CEO was asked whether they would pump more oil to fill any gaps in the market left by the ongoing conflict in Europe, he answered that they produce in accordance to the guidelines from the Saudi energy ministry.

“We will pump as long as we meet guidelines from the ministry with regards to levels of production," he explained.

The company reported a free cash flow of $107.5 billion in 2021, compared with $49.1 billion in 2020. It said it will continue its previously declared dividend worth $75 billion for 2021.

The company added that they will develop a significant hydrogen export capability and become a global leader in Carbon Capture and Storage (CCS).