Saudi Arabia’s state-owned oil giant, Aramco, has released its financial results for the full year of 2023, revealing a robust performance despite challenges in the global energy market. With a net income of $121.3 billion, the company achieved its second-highest ever earnings, showcasing resilience and adaptability in a dynamic economic landscape.
The financial highlights of Aramco’s performance in 2023 include a significant increase in total dividends paid, which rose by 30 percent to reach $97.8 billion compared to the previous year. The board of directors also approved a 4 percent year-on-year increase in the base dividend for the fourth quarter of 2023, amounting to $20.3 billion, to be disbursed in the first quarter of 2024. Additionally, a 9 percent increase in performance-linked dividend distribution was declared, with $10.8 billion allocated, marking a notable enhancement in shareholder returns.
Despite a slight decrease in net income compared to the previous year, Aramco maintained strong cash flows from operating activities, amounting to $143.4 billion. Free cash flow stood at $101.2 billion, underscoring the company’s solid financial position. The gearing ratio, a key indicator of financial leverage, improved to -6.3 percent by the end of 2023, reflecting Aramco’s prudent financial management.
Operational highlights for 2023 demonstrate Aramco’s commitment to strategic growth and diversification. The company continued to invest in expanding its hydrocarbon production, with an average daily output of 12.8 million barrels of oil equivalent, including 10.7 million barrels per day of total liquids. Notably, Aramco raised its gas production growth target to more than 60 percent by 2030, signalling a strategic shift towards cleaner energy sources.
Aramco has made significant strides in its downstream expansion efforts, strengthening its presence in key global markets while focusing on value creation. The company’s first international investment in LNG represents a strategic milestone in portfolio diversification and market expansion. Furthermore, Aramco’s commitment to renewables was evident through its participation in solar projects, reflecting a forward-looking approach to sustainable energy development.
In addition to operational achievements, Aramco pursued corporate development initiatives to enhance its supply chain ecosystem and leverage cutting-edge technologies. The company’s inclusion of the Yanbu Refinery in the World Economic Forum Global Lighthouse Network underscores its leadership in deploying innovative solutions for operational excellence and environmental sustainability.
Overall, Aramco’s full-year 2023 results highlight its resilience, agility, and strategic vision in navigating evolving market dynamics. As the company continues to adapt to changing energy landscapes and explore new opportunities, it remains committed to delivering value to its shareholders and stakeholders while contributing to global energy security and sustainability.
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