Saudi Aramco will increase spending and issue bonus shares as oil’s surge to more than $100 a barrel bolsters the company’s plan to boost crude and natural gas production.
The Saudi Arabian firm, like rivals such as BP Plc and Chevron Corp., has experienced a sharp turnaround from 2020, when the coronavirus pandemic hammered energy demand and forced it to shelve several projects.
Net income rose to $110 billion in 2021, up from $49 billion a year earlier, the state-controlled company said on Sunday. Aramco will probably increase capital expenditure to between $40 billion and $50 billion this year, compared with $32 billion in 2021.
Aramco, the world’s biggest energy exporter, forecasts more growth in investment until the middle of the decade. That makes it stand out from many other competitors who are cutting back on fossil fuels to reduce carbon emissions. Aramco has said oil and gas consumption will remain strong for decades and that the run up in prices underscores the need for more exploration.
The company wants to raise crude-production capacity to 13 million barrels a day from 12 million by 2027, a project that will cost billions of dollars. It is also trying to increase gas output by more than 50% by 2030.
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