Saudi Aramco, the state-owned oil giant, has reported a profit of £134 billion, which is a record for any publicly-listed company in history.
The company’s enormous profit is due to the rise in energy prices that followed Russia’s invasion of Ukraine in February 2022. Sanctions imposed after the invasion limited the sale of Moscow’s oil and natural gas in western markets, leaving them reliant on Middle Eastern supplies.
The surge in oil prices has contributed to the global cost of living crisis, affecting consumers who are paying more for everything from food to clothing.
The high oil prices have not only driven up inflation worldwide but also strained relations between the United States and Saudi Arabia, which owns 95% of Aramco shares.
President Joe Biden has warned the capital, Riyadh, that there will be consequences for the high oil prices. Aramco’s profits rose 46.5% last year when compared to the 2021 results, which were already close to a global corporate record.
Other oil giants also reported record profits in 2022, such as Britain’s Shell and BP with profits of £32 billion and £23 billion, respectively, and US firm ExxonMobil with profits of £46 billion.
However, Saudi Aramco’s earnings surpass all of them and comfortably beats the previous record for a publicly-listed company – the £100 billion profit also made by Aramco in 2018.
The massive profits across the sector have renewed calls in the UK for a fresh windfall tax on energy giants to help ease the burden for struggling households.
The high profits by oil companies have been a significant contributor to the cost of living crisis in Britain and worldwide.
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