Saudi Arabian Oil Company "Saudi Aramco" announced today, Sunday, its financial results for the year 2021, achieving a net profit increase of 124.4%. The company stated that its net profits amounted to 412.4 billion Riyals last year, compared to 183.76 billion Riyals in 2020, which represents more than a doubling. This increase primarily reflects the impact of rising crude oil prices, the consolidation of SABIC's results for a full year, and the significant rise in profit margins from refining and chemicals operations.
The company's revenues rose to 1.3469 trillion Riyals, compared to revenues of 768.11 billion Riyals in 2020, representing an increase of 75.356%. Other income related to sales reached 154.83 billion Riyals compared to 93.98 billion Riyals in 2020.
**Free Shares**
The company announced a cash dividend distribution to shareholders for the fourth quarter of 2021 amounting to 70.3 billion Riyals (18.8 billion dollars). The company added that these distributions will be supplemented by a proposal from the Board of Directors to capitalize 15 billion Riyals (4 billion dollars) from retained earnings and grant one share for every ten shares. It clarified that, pending regulatory approvals and the extraordinary general assembly for the issuance and distribution of these shares, the total cash dividends for the fiscal year 2021 would amount to 281 billion Riyals, in addition to the share grants.
This aligns with the company's goals to maximize total returns for shareholders by distributing sustainable and increasing dividends in line with future aspirations and growth in free cash flow, thus creating higher long-term value by investing in many available opportunities.
Aramco's President and CEO, Amin Nasser, remarked on the strong company results, stating that they demonstrate "our steadfast focus on a long-term growth strategy aimed at enhancing value for our shareholders, while also affirming our financial discipline and flexibility in dealing with changing market conditions."
**Volatile Market**
He noted that the current outlook for the oil market appears volatile; however, our investment plans aim to benefit from increasing long-term demand for reliable, sustainable, and affordable energy. This includes increasing our sustainable maximum crude oil production capacity, implementing our gas production expansion program, and expanding activities in converting liquids to chemicals.
He continued: "We at Saudi Aramco recognize that environmental sustainability and energy security are critical, and we continue our investments in carbon capture and storage, renewable energy sources, and low-carbon hydrogen production, which support the transition in the global energy sector and contribute to achieving our ambition of reaching net-zero carbon emissions."
**Debt**
The company indicated that its debt decreased to 14.2% last year, compared to 23% at the end of 2020. Free cash flow for the company reached 403 billion Riyals last year, compared to 184.3 billion Riyals in 2020. Capital expenditures in 2021 were approximately 119.6 billion Riyals, an increase of 18% from 2020.
