Aramco ready to splash cash upstream
Soaring annual profits to be channelled into unapologetic expansion of output capacity
The headline figures from Saudi Aramco’s unveiling of its annual results in the eastern city of Dhahran in March were both dramatic and predictable. A year-long market recovery from the depredations of the coronavirus pandemic delivered profits more than double those seen in 2020. Of greater long-term significance were the indications given as to what the company—producer of around a tenth of the world’s oil—intends to do with its replenished war chest. And the key message is that it will hike capital spending, primarily to double down on upstream expansion. The direction of the main financial metrics was overwhelmingly positive. Net income soared by 124pc, to $110bn, chiefly on average oil
Also in this section
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy