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Saudi Aramco says annual profit more than doubled in 2021
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Water storage tanks at the Khurais Processing Department in the Khurais oil field in Khurais, Saudi Arabia, June 28, 2021. /CFP

Water storage tanks at the Khurais Processing Department in the Khurais oil field in Khurais, Saudi Arabia, June 28, 2021. /CFP

Energy giant Saudi Aramco Sunday reported a 124-percent jump in 2021 net profit due to higher crude prices, as global economic growth recovered from the pandemic-induced 2020 downturn.  

"Aramco's net income increased by 124 percent to $110.0 billion in 2021, compared to $49.0 billion in 2020," the company said in a statement. 

Aramco, Saudi Arabia's cash cow, achieved a net income of $88.2 billion in 2019 before the COVID-19 pandemic hit global markets, resulting in huge losses for the oil and aviation sectors, among others. 

Producers like Saudi Arabia have been urged to increase output as oil prices have surged to 14-year highs of above $100 per barrel in recent weeks, as Russia's military operation in Ukraine prompted fears of supply disruptions.

"Global spare capacity is around 2 million barrels per day, which is not significant enough to deal with these geopolitical events and what is happening in the market," Aramco CEO Amin Nasser said in a media call after the release of 2021 results. 

Nasser said he expected demand to return to pre-pandemic levels by the end of this year.

Asked whether Saudi Arabia would pump more oil to fill any gaps in the market left by the Ukraine conflict, Nasser said it would produce according to guidelines from the Saudi energy ministry.

"The market is very tight in terms of available barrels," he said. "We are doing our part but that is not enough; other players also need to do their investments."

Aramco floated 1.7 percent of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world's biggest initial public offering.

(With input from agencies)

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