The Strategist

Saudi Aramco posts net profit second largest in the company's history

03/12/2024 - 02:19

The Saudi state-owned oil corporation, Saudi Arabian Oil Co. (Saudi Aramco), reported its second-highest net profit in company history in 2023.

Net profit for the corporation last year was $121.3 billion in contrast to a record $161.1 billion the previous year, according to a press release from the company. Reduced sales volumes and oil prices were two of the main causes of the fall.

Compared to 13.6 million barrels in 2022, Saudi Aramco's total hydrocarbon production per day was 12.8 million barrels of oil equivalent. In the meantime, it intends to raise gas output by 2030 by more than 60% over 2021 levels.

The amount spent on capital projects increased to $49.7 billion from $38.8 billion in the year before. The business projects them to be between $48 and $58 billion this year. According to Aramco, they should continue to increase until roughly the middle of the decade.

Additionally, the company declared a 9% rise in its performance-linked dividend to $10.8 billion and a 4% increase in its base dividend to $20.3 billion for the fourth quarter. It will distribute $97.8 billion in dividends in total in 2023, a 30% increase over 2022.