ALBAWABA – Saudi Arabia’s oil giant, Aramco, has announced its 2023 full year financial report, recoding $121.3 billion in net income, a downturn from last year’s $161.1 billion, but still marking its second-highest on record, with $27.8 billion net income during the fourth quarter.
Aramco also announced a basic dividend of $20.3 billion for the fourth quarter, which would be distributed during this quarter irrespective of the company's performance. It also authorized its third performance-linked dividend, valued at $10.8 billion. Compared to the prior quarter, both dividends were raised.
Reduced refining and chemical margins, as well as lower crude oil prices and sales volumes, contributed to the year-over-year reduction, according to Arab News. Lower income taxes, zakat, and output royalties throughout the year, however, helped to somewhat offset this decline.
“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,” said Amin H. Nasser, Aramco President & CEO.
According to the report, capital expenditures increased from $38.8 billion in 2022 to $49.7 billion in 2023, of which $42.2 billion came from organic capital expenditures, compared to $37.6 billion from last year. Aramco expects capital expenditures would reach between $48 billion to $58 billion this year and continue to rise up until the middle of the decade.
Ahmad H. Nasser commented “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.”
