Skip to content
aramco logo
This Annual Report covers financial and operational aspects of Aramco.
Download our Annual Report 2022 (PDF)
Access key financials

Why have we embarked on our largest capital expenditure program ever?

Because we believe the world’s need for affordable, reliable, and sustainable energy will continue to grow, and we plan to grow our lower carbon intensity crude oil production with it.

Because increasing our gas production will meet growing domestic demand, expanding our liquids-to-chemicals capabilities de-risks our Upstream production, and using innovation and technology helps us find potential new pathways to a lower-carbon future.

And because we support a practical, stable and inclusive energy transition.

Overview

“Aramco delivered record financial performance in 2022, and we 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.”

Amin H. Nasser, President and Chief Executive Officer of Aramco

This content is blocked

You need to give permission.

CEO video remarks: Full-year 2022 results

Achieving record-setting performance and positioning ourselves for the future

“The future will most certainly favor the lowest-cost, least carbon-intensive producers, and Aramco is exceptionally well-placed in this respect.”

His Excellency Yasir O. Al-Rumayyan, Chairman of the Board of Directors


Creating value and delivering our strategy

“We are strategically positioning Aramco to be a key player in a practical, stable and inclusive global energy transition.”

Amin H. Nasser, President & CEO


Chairman's message

.pdf

112.5KB

Our strategy

Aramco’s strategy is driven by its belief that reliable and affordable energy supplies, including oil and gas, will be required to meet the world’s growing energy demand, and that new lower-carbon energy supplies will gradually complement conventional sources.

Aramco continues to work to achieve further reductions in its carbon footprint, enabled by technology and greater efficiency of energy use by all stakeholders. The world’s demand for affordable, reliable and more sustainable energy will continue to grow, and we believe it can best be met by a broad mix of energy solutions.

Within this context, Aramco’s vision is to be the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable and reliable manner.

Aramco strives to provide reliable, affordable, and more sustainable energy to communities around the world, and to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals, aiming to capture value across the energy value chain and profitably growing its portfolio.

To achieve its mission, Aramco focuses on four strategic themes across its businesses:

Upstream preeminence

As the principal engine of value generation, the Company intends to maintain its position as the world’s largest crude oil company by production volume and one of the lowest-cost producers. The Company’s vast reserves base, spare capacity, and unique operational flexibility allow it to effectively respond to changes in demand.

“Upstream's steadfast commitment and outstanding performance has resulted in a record-breaking year. By prioritizing safety, maintaining reliability and committing to expansion, Upstream demonstrated Aramco's role in stabilizing markets while reinforcing our crucial, long-term role in the orderly transition to a net-zero future.”

Nasir K. Al-Naimi, Upstream President

Key events in 2022 

  • Progressed with the Government’s mandate for MSC to be increased from 12.0 mmbpd to 13.0 mmbpd by 2027.
  • Progressed with the development of the Jafurah unconventional gas field.
  • Maintained its low-cost position with average lifting cost and average capital expenditures of SAR 11.44 ($3.05) and SAR 20.3 ($5.4) per boe produced, respectively.
  • Maintained low upstream carbon intensity of 10.3 kg of CO2e/boe.
  • Maintained total hydrocarbon reserves under the Concession agreement at 258.8 billion boe.

 

 

Downstream integration

The Company has a dedicated system of domestic and internationally wholly-owned and affiliated refineries that are critical to monetizing its upstream production.

Through continued strategic integration, the Company captures additional value across the hydrocarbon chain.

“Aramco’s unwavering focus on operational excellence, reliability and safety paved the way for record-breaking Downstream profitability in 2022, capturing improved refining margins. Delivering on our Downstream transformation program, and the successful execution of strategic acquisitions, has further enhanced Aramco’s position as a leader in the global downstream sector.”

Mohammed Y. Al Qahtani, Downstream President





 

 

 

Key events in 2022

  • Successfully completed three landmark transactions with Polish refiner and fuel retailer PKN ORLEN, to grow its integrated refining and petrochemicals capacity.
  • Announced its final investment decision to participate in the development of a major integrated refinery and petrochemical complex in northeast China.
  • Signed an equity purchase agreement to acquire Valvoline Inc.’s global products business (Valvoline Global Products) for SAR 9.9 billion ($2.65 billion) that closed in March 2023.
  • SASREF and SABIC Agri-Nutrients received the world’s first independent certifications for production of blue ammonia and hydrogen.
  • Aramco and SATORP obtained the International Sustainability & Carbon Certification Plus (ISCC+) credential for their joint waste plastic recycling initiative.
  • Aramco and its affiliate, S-OIL, made a final investment decision to develop one of the world’s largest refinery-integrated petrochemical steam crackers.
  • Aramco and TotalEnergies made a final investment decision for the construction of a large petrochemical complex in Saudi Arabia.
  • Low-carbon initiatives

    The Company aims to lower the net carbon emissions of its operations and to support the global energy transition through development of lower-carbon products and solutions across the energy, chemicals, and materials sectors.

    Aramco’s strategy for lower carbon intensity energy, which seeks to address climate-related risks and opportunities, aims to de-risk its businesses and maintain competitiveness and differentiation in carbon-constrained scenarios.

    The strategy has two main dimensions: lower the net carbon emissions of the Company’s operations over time with the ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across wholly-owned operated assets by 2050; and develop lower-carbon products and solutions across the energy, chemicals and materials space.

    • Lowering the Company’s own net carbon emissions calls for managing, reducing, and balancing carbon emissions across operations through a raft of measures that span efficiency gains, renewable power, carbon capture, utilization, and storage, and multiple offset initiatives.
    • Developing lower-carbon products and solutions aims primarily at sustaining and diversifying demand for oil and gas through competitive technologies and selective business initiatives. These include blue hydrogen and ammonia, lower-carbon fuels, and gas to complement renewables in the domestic energy mix and to reduce liquids-burning in power generation. These initiatives are expected to help the Company participate in the growing market for lower-carbon products and solutions. Aramco is pursuing offering carbon capture and storage as a service to third parties, and is pursuing investments in renewables that align with its other lower-carbon initiatives.

    Aramco aims to grow its business sustainably by leveraging technology and innovation to lower its climate impact. The Company intends to maintain its position amongst the leaders in upstream carbon intensity, with one of the lowest carbon footprints per unit of hydrocarbons produced.

    Localization and the promotion of national champions

    The Company facilitates the development of a diverse, more sustainable and globally competitive in-Kingdom energy ecosystem to underpin the Company’s competitiveness and support the Kingdom’s economic development.

    In addition to Aramco’s core businesses, the Company is seeking to foster new businesses that will increase the long-term reliability and competitiveness of the Company’s ecosystem, as well as contributing to the Kingdom’s economic development. This is key to ensuring Aramco’s long-term cost and productivity leadership, sustainability, and resilience.

    The objectives are two-fold: to localize the Company’s supply chain and promote national champions.

    • Aramco aims to strengthen its supply chain through its localization efforts and utilizes the Kingdom’s Shareek program which provides a framework to incentivize in-Kingdom investments. As part of this strategy, Aramco seeks to increase the use of in-Kingdom suppliers of goods and services to 70.0% through its in-Kingdom Total Value Add (iktva) program.
    • Through its Namaat industrial investment program, Aramco intends to drive continued growth and development of a resilient and sustainable domestic supply chain to strengthen and expand the in-Kingdom private sector.
    • The Company’s Taleed program seeks to accelerate the growth of small- and medium-enterprises (SMEs) across multiple sectors in the sustainability, digital, manufacturing, industrial, and social innovation domains.

    Our performance

    FY 2022 Financial Highlights

    The Board of Directors has declared a cash dividend of SAR 73.2 billion ($19.5 billion) for the fourth quarter of 2022, which raises the quarterly dividend by 4.0% compared to the previous quarter. This aligns with Aramco’s dividend policy aiming to deliver a sustainable and progressive dividend.

     

    1. Gearing ratio has been amended to reflect Aramco’s revised gearing definition. 
    2. Earnings per share have been adjusted to reflect the effect of the bonus shares issuance

    * Non-IFRS measures: refer to “Non-IFRS measures reconciliations and definitions” for further details.

    Net income ($161.1bn 2021:$110)

    604.0bn SAR

    EBIT ($307bn 2021:$208bn)*

    1,149.0bn SAR

    Free cash flow ($148.5bn 2021:107)*

    557.0bn SAR

    Net cash provided by operating activities ($186bn 2021:$139bn)

    698.0bn SAR

    Dividends paid ($75.0bn 2021:$75bn)

    281.3bn SAR

    Capital expenditures ($38bn 2021:$32bn)

    141.0bn SAR

    ROACE (2021: 24.4%)*

    31.6%

    Gearing (2021: 12.0%)*1

    (7.9%)

    Earnings per share (basic and diluted, $0.72 2021:$0.48)2

    2.72 SAR

    FY 2022 Operational Highlights

    3. Total liquids is comprised of crude oil, NGL and condensate.
    4. Excludes SABIC Agri-Nutrients and Metals (Hadeed) businesses.
    5. Applies to Saudi Arabian Oil Company (the Company).
    6. Refer to Section 3: Sustainability for further information.

    MSC (mmbpd 2021:12.0)

    12.0

    Hydrocarbon production (mmboed)

    13.6

    Total liquids production (mmbpd 2021:10.4)3

    11.5

    Net refining capacity (mmbpd 2021:4.0)

    4.1

    Net chemicals production capacity (million tons per year, 2021:54.2)4

    56.3

    Reliability5

    99.9%

    Upstream carbon intensity (kg CO2 e/boe, 2021:10.7)6

    10.3

    Flaring intensity (scf/boe, 2021:5.51)6

    4.60

    Total recordable case frequency (per 200,000 work hours, 2021:0.054)6

    0.050

    Capturing growth opportunities and generating long-term value

    “Aramco’s unprecedented financial results for 2022 reinforce our ability to generate consistent value for our shareholders across price cycles, while also providing energy supply stability to our customers.”

     

    Ziad T. Al Murshed, Executive Vice President & Chief Financial Officer

    Sustainability

    Sustainability is embedded within the Aramco strategy. The long-term sustainability of the business will be driven by the Company’s ability to leverage its competitive position while reducing its emissions. Acting responsibly across all aspects of its business will enable Aramco to successfully navigate and benefit from a lower emissions future.

     

    Aramco has identified the following four sustainability focus areas to oversee its sustainability performance: 

    • Climate change and the energy transition;  
    • Safe operations and people development;
    • Minimizing environmental impact; and
    • Growing societal value.

    Business model

    Click here for full image

    Global operations

    Downloads

    Reports & Presentations