Aramco’s 2023 net income hits $121.3 billion, second-highest ever

In a significant financial disclosure, Saudi Aramco, the world’s leading oil company, has unveiled its full-year 2023 results, showcasing a remarkable net income of $121.3 billion. This figure stands as the company’s second-highest ever, underscoring its robust financial performance amidst global economic challenges. Aramco’s success in 2023 is attributed to its unparalleled operational flexibility, reliability, and cost-effective production strategies.

Aramco's 2023 net income hits $121.3 billion, second-highest ever

Despite facing headwinds in the global economy, the company has demonstrated resilience, generating substantial cash flows and maintaining high profitability levels. Total dividends distributed in 2023 amounted to $97.8 billion, marking a significant 30% increase from the previous year’s payouts. The board of directors has approved a 4% year-on-year rise in the base dividend for the fourth quarter of 2023, totaling $20.3 billion, scheduled for disbursement in the first quarter of 2024.

Additionally, a 9% increase in performance-linked dividend distribution, reaching $10.8 billion, compared to two payments of $9.9 billion in the latter half of 2023. Capital investments for 2023 soared to $49.7 billion, with $42.2 billion allocated to organic capital expenditure, reflecting a notable 28% surge from the previous year. Looking ahead, Aramco forecasts its capital investments for 2024 to range between $48 to $58 billion. The company aims to maintain its Maximum Sustainable Capacity at 12 million barrels per day, which is expected to yield significant cost savings between 2024 and 2028.

Aramco anticipates the total performance-linked dividend for 2024 to reach $43.1 billion, inclusive of the $10.8 billion set for the first quarter, pending board approval. Aramco’s President & CEO, Amin H. Nasser, expressed satisfaction with the company’s financial achievements, emphasizing its resilience and agility in navigating challenging market conditions. Nasser reiterated Aramco’s commitment to creating long-term value for its shareholders while pursuing strategic growth opportunities.

In addition to its financial accomplishments, Aramco reported operational milestones for 2023, including maintaining an average hydrocarbon production of 12.8 million barrels of oil equivalent per day (mmboed), with 10.7 million barrels per day (mmbpd) of total liquids. The company sustained its exceptional track record of supply reliability, delivering crude oil and other products with 99.8% reliability throughout the year. Aramco’s strong performance in 2023 underscores its position as a global industry leader, capable of delivering robust financial results amidst evolving market dynamics.