Week 11 in Review: Record profits, a cracking collaboration, and tackling the energy trilemma at CERAWeek
Aramco’s net income of more than $161 billion is its highest recorded since its Initial Public Offering.
The big news of the week was a big number: over 161 billion, specifically.
The company reported a net income of $161.1 billion in 2022, its highest mark since becoming a listed company.
Strong crude oil prices, higher volumes sold and improved margins for refined products were key drivers in achieving the result, which was reported on Sunday.
Here are the big headlines for the week, with a little more on the Year End Financial Report.
Aramco this week announced its full-year 2022 financial results, reporting a record net income of $161.1 billion — its highest annual profits as a listed company.
The company’s net income increased by 46.5% to a record $161.1 billion in 2022, compared to $110.0 billion in 2021. The increase in net income reflects stronger crude oil prices, higher volumes sold and improved margins for refined products. Q4 2022 net income is in line with analyst estimates, excluding certain non-cash items of around $3.3 billion.
The results were underpinned by stronger crude oil prices, higher volumes sold and improved margins for refined products, while the company continues to strengthen its oil and gas production capacity, as well as its downstream portfolio, to meet anticipated future demand.
These results would not have been possible without the dedication and commitment of our employees – and I thank you for the exceptional performance.
— Amin Nasser, Aramco president and CEO
Aramco and Linde Engineering, a global leader in the production and processing of gases, announced that they have signed an agreement to jointly develop a new ammonia cracking technology. The collaboration between the two companies will combine Linde Engineering and Aramco’s experience and capabilities in industrial research and development, lower-carbon hydrogen, and ammonia cracking technology.
A potential differentiator of this new technology is the ammonia cracking catalyst, jointly developed by Aramco and the King Abdullah University of Science and Technology (KAUST), which will be evaluated against other catalysts.
Through this agreement, Aramco and Linde Engineering plan to build a demonstration plant in northern Germany to showcase this new ammonia cracking technology.
Aramco played a leading role at CERAWeek 2023 as energy executives and policymakers from around the world gathered in Houston in early March for insightful dialogues about the most viable ways to lower carbon emissions without sacrificing energy security or affordability.
This “energy trilemma” was the conference’s primary theme. Two dozen thought leaders from Aramco, its affiliates, and partner companies addressed key energy industry challenges as speakers or panelists.
Innovative decarbonization initiatives from across the Aramco enterprise were presented to many of the 8,000 people at the event, which S&P Global organizes.
“Through its holistic approach to addressing emissions and its wide network of experts, Aramco demonstrated it is playing a leading role in enabling a lower-carbon future — and the scale and speed at which we are working is noteworthy,” said Bashir M. Dabbousi, director of Technology Strategy and Planning.
Some of the panel sessions Aramco Thought Leaders participated in included “Financing Low Carbon: What Makes an Energy Transition Fund Green?”, “Where Will the Workforce for Net Zero Come From?”, Passenger Cars and Hydrogen: Can It Move You?” , “Decarbonization: Learning from Across the Energy Value Chain,” Global Energy Innovation Hubs: Where to Grow Your Startup Program, “Global Energy Innovation Hubs: Where to Grow Your Startup Program,” “The Role of Hydrocarbons in Getting to Net Zero,” “Frameworks to Improve Quality and Transparency in the Voluntary Carbon Market,” “Groundbreaking Technologies,” and “From Gray to Clean: Hydrogen in the Refinery.”
Hundreds of Aramco annuitants returned to the Kingdom for the first time in years last week, taking part in the fifth KSA Expat Reunion. By all accounts, the event went off smoothly with hardly a hitch.
The key? Volunteers, says the events organizer.
“These monumental gatherings are due in no small part to the efforts of many groups and people,” said Ali Baluchi, Reunion Steering Committee chairman of the fifth 2023 KSA Expat Reunion. “I must thank the many volunteers who have helped in organizing and supporting the reunions since the very beginning.”
Sue Conway, Reunion volunteer coordinator, managed, trained, and assigned volunteers to roles that ranged from restocking refreshments, taking photos, and helping with administrative work, to simply sitting and reminiscing with participants about beautiful memories of past days.
“This event could not take place without the support of each volunteer,” says Conway. “Every little help is important and every interaction with the attendees makes a difference in the volunteer’s and attendee’s experience.”
The 2023 Community Championship has been a huge success in our company because it’s built for the community. It allows all ages, abilities, and nationalities to compete and have fun.
The key factor for success in this championship is people, especially the participants who registered in November, and competed through qualifying, semifinals, and final rounds. The many families and fans who attended have witnessed outstanding competitions, amazing points matches, games, and laughed a lot along the way, but the numbers speak for themselves.
Community Championship by the Numbers
1,816 sports events (competitions)
783 medals winners (333 adults, 450 juniors)
85,000 visitors (all program 3 months)
15,000 visitors finals week (March 3 to 11)