Saudi Aramco reports second-highest net income of $121.3bn in 2023
Saudi Aramco declared a $121.3 billion net income for 2023, its second highest ever.
This reflects the company's strong operational strategies and consistent shareholder value delivery.
Despite lower oil prices and sales, plus reduced refining and chemical margins, a drop in production royalties and taxes mitigated income losses, coming down from $161.1 billion in 2022.
A $27.8 billion Q4 income matched analyst expectations despite non-cash charges. Dividend payments increased by 30% to $97.8 billion over the year. Aramco's final 2023 quarter dividend is $20.3 billion, with a further performance-linked $10.8 billion bonus approved by the board.
Capital expenditure rose by 28% to $49.7 billion in 2023, and 2024 figures are estimated to be between $48 billion and $58 billion. CEO Amin H. Nasser emphasized Aramco's commitment to maximizing the value from their operations, as oil and gas remain crucial in the energy mix for decades, alongside emerging energy forms.
Aramco's free cash flow was $101.2 billion in 2023, though down from $148.5 billion in 2022. Their financial health is indicated by an improved gearing ratio of -6.3%.
Saudi policy enabling Aramco to sustain 12 million barrels per day elevates the firm's flexibility and allows for expansion in gas production and liquid-to-chemicals ventures. Nasser highlighted their strategic advances, citing international LNG investments, retail growth, and exploration of renewable energies.
In a press conference, Nasser advocated for a diverse energy portfolio inclusive of traditional and renewable sources to facilitate a balanced energy transition. As a low-cost, low-carbon intensity producer, Aramco is poised to meet global energy demands affordably and reliably.
Speaking to Arab News, Nasser expressed ambitions to intensify renewable energy engagement, targeting 12 gigawatts by 2030 from solar and wind. Gas production is projected to surge by over 60% by 2030.
Aramco is globally exploring renewable investment opportunities, including solar, wind, hydrogen, and carbon capture. By 2027, Aramco plans to annually sequester 9 million tons of CO2 through collective initiatives.
Despite lower oil prices and sales, plus reduced refining and chemical margins, a drop in production royalties and taxes mitigated income losses, coming down from $161.1 billion in 2022.
A $27.8 billion Q4 income matched analyst expectations despite non-cash charges. Dividend payments increased by 30% to $97.8 billion over the year. Aramco's final 2023 quarter dividend is $20.3 billion, with a further performance-linked $10.8 billion bonus approved by the board.
Capital expenditure rose by 28% to $49.7 billion in 2023, and 2024 figures are estimated to be between $48 billion and $58 billion. CEO Amin H. Nasser emphasized Aramco's commitment to maximizing the value from their operations, as oil and gas remain crucial in the energy mix for decades, alongside emerging energy forms.
Aramco's free cash flow was $101.2 billion in 2023, though down from $148.5 billion in 2022. Their financial health is indicated by an improved gearing ratio of -6.3%.
Saudi policy enabling Aramco to sustain 12 million barrels per day elevates the firm's flexibility and allows for expansion in gas production and liquid-to-chemicals ventures. Nasser highlighted their strategic advances, citing international LNG investments, retail growth, and exploration of renewable energies.
In a press conference, Nasser advocated for a diverse energy portfolio inclusive of traditional and renewable sources to facilitate a balanced energy transition. As a low-cost, low-carbon intensity producer, Aramco is poised to meet global energy demands affordably and reliably.
Speaking to Arab News, Nasser expressed ambitions to intensify renewable energy engagement, targeting 12 gigawatts by 2030 from solar and wind. Gas production is projected to surge by over 60% by 2030.
Aramco is globally exploring renewable investment opportunities, including solar, wind, hydrogen, and carbon capture. By 2027, Aramco plans to annually sequester 9 million tons of CO2 through collective initiatives.
