International Business: Aramco pledges to boost investments – Gulf Digital News

International Business: Aramco pledges to boost investments – Gulf Digital News

DUBAI: Saudi Arabia’s state oil company Aramco, under pressure from the West to boost output amid soaring prices, pledged yesterday to increase investments by around 50 per cent this year as it reported a doubling in 2021 profits.

Saudi Aramco benefited from a more than 50pc surge in oil prices last year, as increased Covid-19 vaccination rates and loosening restrictions resulted in demand outpacing supply.

Prices then leapt above $100 a barrel last month to hit 14-year highs after Russia invaded Ukraine, leading Western nations to urge Saudi Arabia and other producers to raise output.

Aramco said it aimed to boost its capital expenditure (capex) to $40-50 billion this year, with further growth expected until around the middle of the decade. Capex was $31.9bn last year, up 18pc from 2020 – indicating an increase of about 50pc for this year at the middle of the guidance range.

The company made $110bn in net profit last year, up from $49bn a year earlier. Analysts had expected a net profit of $106bn, according to the mean estimate of analysts on Refinitiv’s Eikon.

Aramco shares surged over 4pc in early trade to a high of 43.85 riyals, valuing the company at 8.76 trillion riyals ($2.34trn). The surge