Aramco records second highest profit ever with $121.3 billion net income in 2023

Saudi Arabia’s state oil giant Aramco on Sunday reported a net profit of US $121.3 billion in its full-year 2023 financial results, the second highest net income ever recorded in the company’s history.

Aramco also announced a total dividend payout of $97.8 billion for 2023, up 30% from the dividends paid in 2022.

Aramco recorded the highest profit in its history in 2022 at $161.1 billion, and the company attributed the year-on-year decrease in net income to lower crude oil prices and volumes sold, as well as reduced refining and chemicals margins. Total revenue for Aramco also fell 17% to $440.88 billion, down from $535.19 billion last year, while free cash flow for 2023 stood at $101.2 billion compared to $148.5 billion in 2022.

Cost-effective production base

The results highlight Aramco’s unique operational flexibility, reliability, and cost-effective production base, showcasing the company’s continuous commitment to providing value to its shareholders, Aramco said in a statement.

“In 2023 we achieved our second-highest ever net income. Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds. We also delivered for our shareholders with a 30 percent year-on-year increase in total dividends paid in 2023,” Amin H. Nasser, Aramco President and CEO, said.

Aramco’s capital investments were at $49.7 billion in 2023, including $42.2 billion in organic capital expenditure, marking an increase from $38.8 billion in capital investments and $37.6 billion organic capex in 2022. The company forecast capital investments between $48 billion and $58 billion this year.

“Our capital expenditures increased in line with guidance as we seek to create and capture additional value from our operations, positioning the company for a future in which we believe oil and gas will be a key part of the global energy mix for many decades to come, alongside new energy solutions,” Nasser said.

Among other highlights of its annual performance, Aramco’s production growth target was raised to more than 60% by 2030, against a 2021 baseline, while the company’s first international investment in LNG signalled a support for strategic portfolio expansion and value creation.

Downstream expansion

Aramco also continued its downstream expansion to add value to its growing footprint in the sector in the Kingdom of Saudi Arabia and key global markets. The company also strengthened its focus on renewables with the announced participation in developing two solar projects, with an anticipated combined capacity of 2.66 GW.

“The recent directive from the government to maintain our Maximum Sustainable Capacity at 12 million barrels per day provides increased flexibility, as well as an opportunity to focus on increasing gas production and growing our liquids-to-chemicals business,” Nasser said.

“At the same time, we continue to make progress on several strategic crude oil increments which will contribute to our reliability, operational flexibility and ability to seize market opportunities. In parallel, announcements of our first international investment in LNG, the growth of our international retail operations, continued progress in major overseas refining and chemical projects, and our emerging new energies portfolio all serve to highlight our ability to capitalise on new market opportunities and advance our strategic objectives,” he added.