Saudi Aramco makes progress with Haradh, Hawiyah gas projects: CFO

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Saudi Aramco made good progress in the conventional gas compression projects at Haradh and Hawiyah fields, Ziad Al-Murshed, Chief Financial Officer and Senior Vice President of Strategy and Development, said in the earnings press conference that was attended by Argaam.

He added that the initial construction work of unconventional gas projects at Jafurah gas plant is going on in full swing.

The construction work at gas storage in the Hawiyah Unayzah gas reservoir is nearing completion, Al-Murshed said, noting that it is the first underground gas storage project in the Kingdom and will help Aramco deal with seasonal changes in demand, raise the efficiency of asset use and cut costs.

Further, the senior executive indicated that the company paid nearly $20 billion in promissory notes related to the acquisition of Saudi Basic Industries Corp. (SABIC) during the first half of 2022, which led to reducing financing costs by almost $2.2 billion.

The oil giant gradually settled debts as per the relevant specified schedule, Al-Murshed said.

He explained that capital spending amounted to $16.9 billion in H1 2022, an increase of 8% compared to the same period last year, and is expected to continue rising during H2 2022.

The 2022 capital investment guidance was set between $40-50 billion. Aramco expects expenditure to near the minimum range, depending partly on external investments, which will materialize by the end of this year, or next year.

The giant oil producer achieved improved profitability in the upstream and downstream operations, backed by higher sales and oil prices. Aramco continues to strengthen its balance sheet to maintain a high investment grade credit rating across market cycles.

Al-Murshed added that the company’s largest ever capital program will help the world meet its needs for reliable, safe and low-carbon energy at affordable prices to create better value for shareholders in the long run.

Aramco reported an 86% surge in H1 2022 net profit after minority interest to SAR 316.8 billion, compared to SAR 169.5 billion a year earlier. The second-quarter net profit soared 92% YoY to SAR 174.8 billion.