Oil giant Saudi Aramco shocked activists when it revealed $161 billion in sales for the previous year, claiming it was the highest annual profit ever made by a publicly traded company.
While energy prices increased as a result of restrictions on the sale of Moscow’s oil and natural gas in Western markets because of sanctions, the Saudi Arabian Oil Corporation, as the company is formally known, gained a sizable profit.
Aramco is one of the most valuable companies in the world with a market cap of $1.9 trillion, briefly overtaking Apple Inc. in May. Despite worries about a recession in the US and Europe, Saudi Arabia’s economy has expanded as a result of its success.
The kingdom, which has the largest economy in the region, had the fastest gross domestic product growth among major economies last year, according to the International Monetary Fund. The world’s largest oil exporter is looking forward to another prosperous year in 2023.
The Saudi government announced the creation of a new national airline, Riyadh Air, on Sunday in an effort to reposition Saudi Arabia as a significant worldwide business and tourist destination that would compete with other Persian Gulf carriers. That came after news on Friday of an unexpected agreement between Saudi Arabia and Iran to reestablish diplomatic ties, which increased Beijing’s influence in the region.
In order to capitalize on market demand when China enters the global market once again following the easing of its co*ronavirus limitations, Aramco also plans to raise its production. The Saudi Crown Prince Mohammed bin Salman’s aspirations to build future cityscapes and wean Saudi Arabia off of oil might be funded with the billions needed from this.
Nevertheless, those intentions come despite growing international concerns over how climate change is being accelerated by the burning of fossil fuels. In the meantime, rising energy costs have already strained ties between Riyadh and Washington and increased inflation globally.