DHAHRAN: The Saudi Arabian Oil Company (Aramco) today announced its full-year 2023 financial results, reporting a net income of $121.3 billion, its second-highest ever net income.
The results, underpinned by Aramco’s unique operational flexibility, reliability and low-cost production base, reflect the Company’s ongoing commitment to creating value for its shareholders.
Financial Highlights
*Second highest ever net income of $121.3 billion (2022: $161.1 billion)
*Total dividends of $97.8 billion paid in 2023, up 30% from 2022
*Board declares 4% YoY increase in base dividend for Q4 2023 to reach $20.3 billion, to be paid in the first quarter of 2024, and 9% increase in performance-linked dividend distribution of $10.8 billion, compared to two payments of $9.9 billion in H2 2023
*Capital investments in 2023 reached $49.7 billion, including $42.2 billion organic capex. This represents a 28% increase from capital investments of $38.8 billion in 2022, including $37.6 billion organic capex. Aramco expects 2024
capital investments to be approximately $48 to $58 billion, growing until around the middle of the decade. The directive to maintain Maximum Sustainable Capacity at 12 million barrels per day, mainly from deferral of projects not yet commissioned and reductions in infill drilling, is expected to reduce capital investment by approximately $40 billion between 2024 and 2028.
*Total full year performance-linked dividend to be paid in 2024 is expected to be $43.1 billion, including the $10.8 billion in Q1, based on the previously announced mechanism and subject to Board approval
*Cash flow from operating activities: $143.4 billion (2022: $186.2 billion)
*Free cash flow: $101.2 billion (2022: $148.5 billion)
*Q4 2023 net income in line with analyst consensus, despite taking certain non-cash charges of c.$1.5 billion
*Gas production growth target raised to more than 60% by 2030, against 2021 baseline
*Renewables focus reflected in shareholders’ agreement to participate in developing two solar projects, with an
anticipated combined capacity of 2.66 GW
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% year-on-year increase in total dividends paid in 2023.
‘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.
‘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. At the same time, we continue to make progress on several strategic cru
de 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 capitalize on new market opportunities and advance our strategic objectives.’
In 2023, Aramco’s average hydrocarbon production was 12.8 million barrels of oil equivalent per day (mmboed), including 10.7 million barrels per day (mmbpd) of total liquids.
Aramco continued its strong track record of supply reliability, by delivering crude oil and other products with 99.8% reliability in 2023.
Source: Emirates News Agency