Aramco anticipates capital investments for 2024 to range from $48bn to $58bn. Credit: Skorzewiak/ shutterstock.com.

Saudi Aramco has reported net income of $121.27bn for FY2023, a decline of 25% compared with $161.06bn in 2022.

The company’s net income, however, represents Aramco’s second-highest ever.

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The decline is attributed to a drop in crude oil prices and volumes sold, alongside lower refining and chemicals margins.

Total revenue for 2023 was $440.8bn, down 17% from $535.18bn a year ago.

Aramco said its free cash flow for the year was $101.2bn as against $148.5bn in 2022.

In spite of this, the total dividends paid in 2023 increased by 30% over 2022 to reach $97.8bn.

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The company has declared a base dividend of $20.3bn for the fourth quarter (Q4) of 2023, payable in Q1 2024, and a 9% increase in performance-linked dividend distribution of $10.8bn.

Capital investments in 2023 surged to $49.7bn, marking a 28% increase from $38.8bn in 2022. This includes $42.2bn in organic capital expenditure (capex).

In terms of operations, the company’s average hydrocarbon production for 2023 was 12.8 million barrels of oil equivalent per day, which includes 10.7 million barrels per day of total liquids.

In a press statement Aramco said: “The results, underpinned by Aramco’s unique operational flexibility, reliability and low-cost production base, reflect the company’s ongoing commitment to creating value for its shareholders.”

Looking ahead, Aramco anticipates capital investments for 2024 to range between $48bn and $58bn, with growth expected to continue until around mid-decade.

Aramco president and CEO Amin H Nasser said: “In 2023, we achieved our second-highest ever net income. Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds. We also delivered for our shareholders with a 30% year-on-year increase in total dividends paid in 2023.

“Our capital expenditures increased in line with guidance as we seek to create and capture additional value from our operations, positioning the company for a future in which we believe oil and gas will be a key part of the global energy mix for many decades to come, alongside new energy solutions.

“In parallel, announcements of our first international investment in LNG [liquefied natural gas], the growth of our international retail operations, continued progress in major overseas refining and chemical projects, and our emerging new energies portfolio all serve to highlight our ability to capitalise on new market opportunities and advance our strategic objectives.”