Saudi Gazette report

DHAHRAN — Saudi Aramco announced its full-year financial results for 2023, reporting a robust net income of $121.3 billion, marking its second-highest net income to date.

Amin Nasser, President & CEO of Aramco, highlighted the company's resilience and agility, which have driven substantial cash flows and profitability despite economic challenges. Aramco’s focus remains on creating shareholder value, demonstrated by a 30% increase in dividends paid in 2023.

The company's strategic initiatives and increased capital expenditures reflect its commitment to maximizing value from operations and preparing for a diversified energy future. Aramco plans to maintain its Maximum Sustainable Capacity at 12 million barrels per day, with an emphasis on expanding gas production and its liquids-to-chemicals business. Additionally, Aramco is progressing in strategic crude oil increments to enhance reliability and market responsiveness.

Aramco's venture into international LNG investments, growth in international retail operations, and advancements in overseas refining and chemical projects underscore its adaptability and strategic direction towards new energy solutions and market opportunities.

Financially, the decrease in net income compared to 2022’s $161.1 billion can be attributed to lower crude oil prices and volumes, alongside reduced refining and chemicals margins, mitigated by lower production royalties and taxes. The company’s free cash flow stood at $101.2 billion, with a gearing ratio of -6.3% by the end of 2023.

Aramco has committed to significant dividend payments totaling $97.8 billion in 2023, a 30% increase from the previous year. The company has also outlined its capital investment plans for 2024, projecting between $48 to $58 billion, adjusting for the directive to maintain Maximum Sustainable Capacity. These investments are pivotal for Aramco’s strategic objectives, including enhancing global energy supply reliability and pursuing sustainable energy initiatives.