Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) generated SAR 604.01 billion in net profit after Zakat and tax in 2022, higher by 46.46% year-on-year (YoY) than SAR 412.4 billion.

Revenues hit SAR 2 trillion as of 31 December 2022, an annual surge of 49% from SAR 1.34 trillion, according to the annual income statements.

Additionally, the earnings per share (EPS) stood at SAR 2.72 last year, compared to SAR 1.80 in January-December 2021.

Amin Nasser, President and CEO of Aramco, said: “Aramco delivered a record financial performance in 2022, as oil prices strengthened due to increased demand around the world.”

“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 highlighted.

He noted: “To leverage our unique advantages at scale and be part of the global solution, Aramco has embarked on the largest capital spending program in its history, and last year our capex rose by 18% to reach $37.60 billion.”

“Our focus is not only on expanding oil, gas, and chemicals production but also investing in new lower-carbon technologies with the potential to achieve additional emission reductions — in our own operations and for end users of our products,” the CEO concluded.

Dividends for Q4-22

In line with Aramco’s policy to deliver a sustainable and progressive dividend, the Saudi company announced cash dividends worth SAR 73.15 billion ($19.51 billion) for the fourth quarter (Q4) of 2022, up 4% from the SAR 70.33 billion ($18.76 billion) paid for Q3-22.

In this regard, the Tadawul-listed firm will disburse SAR 0.33 per share for 219.93 billion eligible shares.

Eligibility and distribution dates for the Q4-22 dividends will be 14 and 20 March 2023, respectively.

Capital Raise  

The board of Aramco recommended a 20% capital hike by granting one bonus share for every 10 owned shares.

Accordingly, the new capital will stand at SAR 90 billion distributed over 242 billion shares, compared to SAR 75 billion and 220 billion shares prior to the increase.

In order to carry out the capital raise transaction, the oil giant will capitalise SAR 15 billion from the retained earnings account.

The proposal aligns with the company’s objectives to enlarge the shareholders’ total returns through the distribution of sustainable and progressive dividends. It also backs the firm's prospects, underlying growth in free cash flow, and long-term value creation through investments in available opportunities.

The board members suggested the capital hike during their meeting that was held on 10 March 2023. Meanwhile, the recommendation is still subject to the approval of the extraordinary general meeting (EGM).

In the first nine months (9M) of 2022, Aramco logged net profits after Zakat and tax worth SAR 488.78 billion, an annual surge of 67.97% from SAR 291 billion.