(Finance) – Saudi Aramcothe Saudi national hydrocarbon company, announced that theNet income was $121.3 billion in 2023, up from $161.1 billion in 2022, representing the second-highest net profit ever. The year-over-year decrease is attributed to declines in oil prices and volumes sold, as well as reduced refining and chemical margins, partially offset by a decrease in production royalties during the year and lower taxes. The free cash flow reached $101.2 billion in 2023, up from $148.5 billion in 2022.
“In 2023 we achieved our second highest net profit ever. Our resilience and agility have contributed to healthy cash flows and high levels of profitability, despite an unfavorable economic environment – he commented Amin H. Nasser, President and CEO of Saudi Aramco – We also delivered to our shareholders a 30% year-over-year increase in total dividends paid in 2023.”
“Our capital expenditures have increased in line with guidance as we look to create and capture further value from our operations, positioning the company for a future where we believe oil and gas will be a key part of the global energy mix for many decades to come, together with new energy solutions,” he added.
In 2023 they were paid total dividends for $97.8 billion, up 30% from 2022. Aramco declared a base dividend of $20.3 billion for the fourth quarter, to be paid in the first quarter of 2024. Additionally, the board approved the third distribution of dividends linked to performance dividends of 10.8 billion dollars.
THE capital investments in 2023 they reached $49.7 billion, including $42.2 billion of organic capex. This represents a 28% increase from $38.8 billion in 2022, including $37.6 billion in organic capex. Aramco expects capital investments for 2024 to be around $48-58 billion, growing until around the middle of the decade.
Furthermore, it provides that the directive aimed at maintaining the maximum sustainable capacity at 12 million barrels per day, primarily due to the postponement of projects not yet commissioned and the reduction of infill drilling, will reduce capital investments by approximately $40 billion between 2024 and 2028.