DHARAN — Saudi Aramco has disclosed its annual financial outcomes for the year 2023, registering a commanding net income of $121.3 billion, which comes in as the company’s second most profitable year on record.
The President and CEO of Aramco, Amin Nasser, pointed out that the company’s robust performance, characterized by significant cash flows and profitability, was a result of its ability to remain resilient and agile in the face of economic challenges. This performance is also indicative of Aramco’s unwavering commitment to generating shareholder value, as evidenced by the 30% hike in dividend payouts in 2023.
A strategic vision is evident in Aramco’s increased capital expenditures, showcasing its dedication to optimizing operational value and gearing up for a future that embraces diverse energy sources. The company is set on preserving its Maximum Sustainable Capacity at the 12 million barrels per day mark while focusing on the expansion of gas production and the scaling of its liquids-to-chemicals ventures. Additionally, strategic enhancements in crude oil production capacities are underway to bolster market adaptability and reliability.
The enterprise’s foray into global LNG investments, an expansion in its international retail operations, and progress in refining and chemical projects abroad are testaments to its nimble strategic orientation towards embracing novel energy solutions and tapping into emerging market prospects.
Despite a downturn in net income from the previous year’s $161.1 billion, which can be attributed to subdued crude oil prices and quantities along with narrowed refining and chemical margins, the impact was somewhat cushioned by reduced royalties and taxes on production. By the conclusion of 2023, Aramco’s free cash flow was recorded at $101.2 billion, with a gearing ratio that stood at -6.3%.
In line with its commitment to shareholders, Aramco has upheld substantial dividend disbursements totaling $97.8 billion for the year 2023, marking a 30% increase year-on-year. Looking ahead, the company has delineated capital investment projections for 2024, with an expected outlay of $48 to $58 billion, which factors in the imperative to sustain Maximum Sustainable Capacity. These investments are central to Aramco’s strategic goals, which include fortifying the reliability of global energy supplies and advancing initiatives in sustainable energy.