XLE - Aramco Q4 results - in line earnings warns that industry is under investing

Saudi Aramco (ARMCO) reported Q4 results Sunday, meeting street expectations, guiding to higher capex, and forecasting higher production capacity by the middle of the decade:  Earnings - 2021 operating income met analyst expectations, with results of 772b riyals, versus Bloomberg consensus of 775b riyals. Capital - capital expenditures were guided to $40-$50b for 2022, up from ~$32b in 2021, with the SOE indicating it expects further growth in capital spending by the middle of the decade. Production - Aramco (ARMCO) production has been governed by the existing OPEC+ agreement; however, the group maintains that its "maximum sustainable capacity" sits at 12mb/d (+2mbp/d from current production levels) and that additional spending will lift maximum sustainable capacity to 13mb/d by the mid 2020s. Shareholders - the Q4 dividend was maintained at $18.8b (3.2% forward yield), with management recommitting to a sustainable, progressive dividend policy. Perhaps more interesting than results, was management commentary

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Aramco Q4 results - in line earnings, warns that industry is under investing