Saudi Arabian Oil Co. has announced a net income of $121.3 billion in its full-year 2023 financial results, marking the second-highest in its history.
These 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, it said in a press release.
In a press statement, Amin H. Nasser, Aramco president and CEO, said: “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.”
In 2023, Aramco reported a net income of $121.3 billion, a decrease from $161.1 billion in 2022, marking the company’s second-highest net income to date. The year-on-year decline is attributable to lower crude oil prices and volumes sold, along with reduced refining and chemical margins. This decrease was partially offset by a reduction in production royalties, as well as lower income taxes and zakat during the year.
On the other hand, the state-owned oil giant reported a net income of $27.8 billion in the fourth quarter of 2023, aligning with analyst consensus, despite incurring certain non-cash charges of approximately $1.5 billion.
The company announced a total dividend payment of $97.8 billion in 2023, marking a 30 percent increase compared to 2022.
Aramco has further declared a base dividend of $20.3 billion for the last three months of 2023, slated to be disbursed in the closing quarter of this year. Moreover, the company’s board has approved a $10.8 billion performance-linked dividend, marking the third such payout.
In 2023, Aramco’s capital investments reached $49.7 billion, reflecting a 28 percent increase from the previous year, 2022. The company also projected that capital investments in 2024 could range from $48 billion to $58 billion.
Nasser added: “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.”—AN
