The Facts
Saudi Aramco, the state-owned oil company of Saudi Arabia, reported that it earned $161B last year — the highest-ever annual profit recorded by a publicly listed company. The announcement drew immediate criticism from activists concerned about climate change.
Aramco is the latest energy firm to report record profits following soaring energy prices and bigger volumes. Earlier this year, ExxonMobil and Shell showed record 2022 results at $55.7B and $39.9B, respectively; Aramco's profit represents a 46.5% rise compared with last year.
The Spin
Narrative A
Oil prices swung wildly throughout the globe after Russia invaded Ukraine which, as was the case with many other oil companies, led to higher profits. However, profits in and of themselves don't mean something nefarious occurred. Aramco will be able to take these record amounts and invest them in cleaner, lower-carbon energy sources in pursuit of a greener future.
Narrative B
Saudi Arabia, with a long history of human rights abuses within its own border and also in Yemen, should not be using Aramco's extraordinary profits to finance these atrocities. Instead, Aramco should fund a human rights-based transition to renewable energy.
