Tag: Aramco

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Saudi Aramco most profitable company ever in Fortune 500

The strength of the global energy sector was dramatically clear as Saudi Aramco nearly knocked the retail Goliath from its perch…reports Asian Lite News

Fortune announced that US retailer Walmart has topped its Global 500 list for 2023, ranking the world’s largest corporations by revenue for fiscal 2022.

On Fortune’s authoritative ranking of the (current) corporate world order, the Arkansas-based retailer claimed No. 1 for the 10th consecutive year and for the 18th time since 1995.

Walmart joins a spike in the number of US companies on the Global 500 this year, reaching its highest total since 2010 at 136 companies, which is also the highest for a stand-alone country.

The strength of the global energy sector was dramatically clear as Saudi Aramco nearly knocked the retail Goliath from its perch. 

Saudi Aramco (No. 2) benefited from soaring energy prices — fuelled by Russia’s invasion of Ukraine — that also propelled Exxon Mobil (No. 7) and Shell (No. 9) back into the top 10 by revenue. In profits, Saudi Aramco earned $159 billion, the highest annual total ever for a Fortune Global 500 company.

Aramco

Big Tech, meanwhile, proved it also remains a robust and profitable sector. Together, Apple, Alphabet, and Microsoft brought in $233 billion in net income, with Apple (No. 8) earning just short of $100 billion in profits, the most ever by a US company.

There were 39 newcomers to this year’s Fortune Global 500, including 23 companies making their debut, such as Warner Bros. Discovery (No. 449), plus first time Chinese companies, Contemporary Amperex Technology (No. 292) and Meituan (No. 467).

By geography, Chinese companies in total – Greater China: mainland China including Hong Kong, and adding Taiwan – top this year’s Global 500 with 142 companies.

But the 136 US companies generated more revenue in 2022 – $13 trillion to Greater China’s $11.7 trillion. An economic slump, tighter regulation, and the lingering impact of Covid restrictions in mainland China hurt revenue at consumer-facing companies such as Alibaba (No. 68), Tencent (No. 147), and JD.com (No. 52).

Fortune Global 500 companies generated revenues totaling $41 trillion — more than one-third of the world’s GDP — for an increase of 8 per cent over last year.

Cumulative profits were down 7 per cent from last year at $2.9 trillion. Companies on the 2023 list employ 70.1 million people worldwide and are based in 232 cities and 33 countries/territories and regions around the world. 

The number of women CEOs of Fortune Global 500 companies rose to 29 this year, from 24 last year.

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Aramco reports record profit of $161 billion

The increase in net income reflects stronger crude oil prices, higher volumes sold and improved margins for refined products…reports Asian Lite News

The Saudi Arabian Oil Company (Aramco or the Company) has announced its full-year 2022 financial results, reporting a record net income of $161.1 billion — its highest annual profits as a listed company. Aramco also declared a fourth quarter dividend of $19.5 billion, to be paid in the first quarter of 2023.

The results were underpinned by stronger crude oil prices, higher volumes sold and improved margins for refined products, while the Company continues to strengthen its oil and gas production capacity, as well as its downstream portfolio, to meet anticipated future demand.

Commenting on the results, Aramco President & CEO Amin H. Nasser, said: ‘’Aamco delivered record financial performance in 2022, as oil prices strengthened due to increased demand around the world. We also continued to focus on our long-term strategy, building both capacity and capability across the value chain with the aim of addressing energy security and sustainability.

“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. 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 18.0% to reach $37.6 billion.

Aramco

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

Aramco’s net income increased by 46.5% to a record $161.1 billion in 2022, compared to $110.0 billion in 2021. The increase in net income reflects stronger crude oil prices, higher volumes sold and improved margins for refined products. Q4 2022 net income is in line with analyst estimates, excluding certain non-cash items of around $3.3 billion.

Free cash flow reached a record $148.5 billion in 2022, compared to $107.5 billion in 2021. Aramco continues to emphasize a strong balance sheet and its gearing ratio at the end of 2022 was -7.9%, compared to 12.0% at the end of 2021.

Aramco declared a dividend of $19.5 billion for the fourth quarter, to be paid in Q1 2023. This represents a 4.0% increase compared to the previous quarter, aligned with the Company’s dividend policy aiming to deliver a sustainable and progressive dividend. Additionally, the Board of Directors also recommended the distribution of bonus shares to eligible shareholders in the amount of one share for every 10 shares held, subject to required Extraordinary General Assembly and regulatory approvals.

Capital expenditure in 2022 was $37.6 billion, an increase of 18.0% from 2021. Aramco expects 2023 capital expenditure to be approximately $45.0 billion to $55.0 billion including external investments, with capex increasing until around the middle of the decade.

Aramco also completed an energy infrastructure deal in February 2022 resulting in a consortium of investors, led by BlackRock Real Assets and Hassana Investment Company, acquiring a 49% stake in a newly formed subsidiary, Aramco Gas Pipelines Company (AGPC), for $15.5 billion.

In 2022, Aramco’s average hydrocarbon production was 13.6 million barrels of oil equivalent per day (mmboed), including 11.5 million barrels per day (mmbpd) of total liquids.

Aramco continued its strong track record of supply reliability by delivering crude oil and other products with 99.9% reliability in 2022. It was the third year running that Aramco achieved this level of reliability.

Upstream continues to execute its growth plans to promote long-term productivity of Saudi Arabia’s reservoirs and is proceeding with implementing the Government’s mandate to increase Aramco’s crude oil MSC to 13.0 mmbpd by 2027.

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Aramco signs over 100 deals worth $7.2bn

Aramco

The agreements or memorandums of understanding were signed with various companies, including communications technology company Zoom…reports Asian Lite News

Saudi Aramco has signed over 100 deals valued at about $7.2 billion to help advance a diverse, sustainable and globally competitive industrial ecosystem in Saudi Arabia.

The agreements or memorandums of understanding were signed with various companies, including communications technology company Zoom, fintech business Taulia Inc and logistics company DHL, Xinhua news agency reported.

The signing took place during the 7th edition of the In-Kingdom Total Value Add (iktva) Forum and Exhibition. The iktva initiative encourages international companies to establish regional headquarters in Saudi Arabia.

“I am proud to announce a major new initiative in digital transformation with the launch of the Aramco Digital Company today. We are planning to invest $1.9 billion over the next three years, making it the biggest Aramco investment in digital to date, while adding value to the Kingdom’s digital ecosystem,” Arab News quoted Saudi Aramco’s president and CEO Amin Nasser as saying.

Another agreement signed by Aramco during the event was with Accenture to accelerate system integration and digital solution services, Arab News reported.

It also reached a deal with Achilles to develop and localise environmental, social, and governance rating services. 

The Aramco chief told the audience that the iktva program achieved 63 percent local content in 2022, up from 35 percent in 2015 when it was initially launched. Saudi Energy Minister Prince Abdulaziz bin Salman later said he hoped that the local content would reach 85 percent by 2030, it was reported.

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Arab News Saudi Arabia

Aramco announces $1.5bn Sustainability Fund

Aramco

The fund plans to invest in technologies that support the Company’s announced net-zero 2050 ambition in its wholly-owned operational assets…reports Asian Lite News

Aramco today announced the creation of a $1.5 billion Sustainability Fund to invest in technology that can support a stable and inclusive energy transition. It was unveiled at the sixth edition of the Future Investment Initiative (FII) and is among the largest sustainability-focused venture capital funds globally.

Managed by Aramco Ventures, the venture capital arm of Aramco, the fund is an extension of the Company’s efforts to meet the world’s growing energy demand, with lower greenhouse gas emissions.

The fund plans to invest in technologies that support the Company’s announced net-zero 2050 ambition in its wholly-owned operational assets, as well as development of new lower-carbon fuels. Initial focus areas will include carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels. The fund will target investments globally.

In addition, Aramco’s wholly-owned subsidiary Aramco Trading Company has participated in the first voluntary carbon credits auction organized by the Public Investment Fund (PIF). It follows the signing of a Memorandum of Understanding between Aramco and PIF earlier this year, to participate in a regional voluntary carbon market to be launched in Saudi Arabia in 2023.

Aramco Chairman, HYasir O. Al-Rumayyan, said: “Climate change is a critical issue, which is why sustainability is well-integrated in Aramco’s strategy and investment decisions. The Company is harnessing innovation and collaboration as it seeks long-term solutions to global energy challenges. By driving large-scale investments and building key domestic, regional and international partnerships, Aramco aims to enable a stable and inclusive energy transition that meets the world’s need for energy with lower emissions.”

Aramco’s ambition is to achieve net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions across its wholly-owned operated assets by 2050. In June, the Company also announced  a set of interim targets that it aims to achieve by 2035, which are intended to reduce or mitigate net Scope 1 and Scope 2 GHG emissions across its wholly-owned operated assets by more than 50 million metric tons of CO2e annually, when compared to the business-as-usual forecast.

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Arab News Saudi Arabia

Aramco to complete Valvoline Global Products acquisition by 2023

“Valvoline and Aramco will expand their existing partnership to ensure that Valvoline’s iconic brand is managed in a consistent and holistic manner,” he said…reports Asian Lite News

Saudi Arabian Oil Co., also known as Aramco, plans to complete Valvoline Global Products acquisition by early 2023, Mohammed Y. Al-Qahtani, Aramco’s downstream senior vice president, said.

In early August, the oil giant announced that it had signed an SR9.9 billion ($2.65 billion) equity purchase agreement to acquire the US-based company.

Because VGP is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants and automotive chemicals, it perfectly fits within the company’s base oil portfolio and lubricant growth strategy, Al-Qahtani said.

With this acquisition, he added that Aramco would expand its research and development activities and its partnership with original equipment manufacturers. The buyout will also complement its line of premium branded lubricant products.

“Valvoline and Aramco will expand their existing partnership to ensure that Valvoline’s iconic brand is managed in a consistent and holistic manner,” he said.

VGP will acquire perpetual ownership of the Valvoline brand, trademarks and copyrights in the products sector, Al-Qahtani informed.

As the crude producer seeks to expand the brand globally, VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major OEMs and 150-year brand recognition will benefit the company, he added.

Talking about Aramco’s plans for the VGP employees, Al-Qahtani said: “VGP employees will be part of a company with the experience and platform to drive the success of the business going forward. Aramco appreciates the benefits of the talented VGP team around the globe driving the long-term success of the business.”

Al-Qahtani further stated that this transaction contributes significantly to Saudi Aramco’s 2030 strategic target of selling finished lubricants.

He said Aramco would own the Valvoline brand worldwide after closing the deal. For retail services, Valvoline will hold the Valvoline brand globally, excluding China and certain Middle Eastern and North African countries.

Through a long-term supply agreement, Valvoline will also procure lubricants from Global Products.

Commenting on the acquisition, Sam Mitchell, Valvoline CEO, previously said that the sale of VGP represented the successful outcome of its strategy to unlock the full, long-term value of its strong, but differentiated retail services and global products businesses.

Mitchell added that he was pleased that the company’s global products team would have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader.

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Arab News Business Saudi Arabia

30% rise in Saudi Aramco’s Q1 net profit

Saudi Aramco'

Its net income this quarter reached $21.7 billion compared to $16.7 billion in the same period last year…reports Asian Lite News

Saudi Arabia’s oil giant Aramco said on Tuesday that its net profit increased by 30 per cent in the first quarter of 2021, due to higher oil prices and an improved economic environment amid the pandemic.

Its net income this quarter reached $21.7 billion compared to $16.7 billion in the same period last year, reports dpa news agency.

The company said it will distribute cash dividends totalling $18.8 billion, due in the second quarter.

“Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming. And while some headwinds still remain, we are well-positioned to meet the world’s growing energy needs as economies start to recover,” Aramco President and CEO Amin Nasser, said in a statement.

The results reflect a dramatic shift from last year due to the coronavirus pandemic and lower oil prices.

In 2020, Aramco said its net profit fell by nearly half of what it was in 2019.

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Meanwhile, the Kingdom will lift the suspension on its citizens travelling abroad from 1:00 am on Monday, May 17, according to the Saudi Press Agency.

All citizens who have been vaccinated or have recovered from Covid-19 are eligible to travel,as well as those under 18.

Growth chart. (File Photo: IANS)

The following categories will be covered by the decision: “Immunised citizens who received two full doses of the (COVID-19) vaccine, as well as those who received one dose, provided that (14) days have passed since they were vaccinated with the first dose, and as confirmed by the data displayed on Tawakkalna App. Second: Citizens who have recovered from the Coronavirus, provided that they have spent less than (6) months since they were infected, and as confirmed by the data displayed on Tawakkalna App. Third: Citizens under the age of 18 years, provided that they submit an insurance policy before travel approved by the Saudi Central Bank, covering the risks of (COVID-19) outside the Kingdom of Saudi Arabia, and according to the instructions announced by the relevant authorities. This category will be subjected to home quarantine after returning to the Kingdom of Saudi Arabia for a period of (7) days, provided that a PCR test is taken at the end of the quarantine period, while persons under the age of (8) years are exempt from the PCR test. and this category is subject to amendment according to the instructions of the Ministry of Health,” according to SPA.

A Saudi Ministry of Interior official source stressed the need for everyone to adhere to the precautionary and preventive measures, and not to be complacent in applying health requirements, such as social distancing, wearing a mask, and continuously disinfecting hands.

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