The Saudi Arabian Oil Company (Aramco) announced its full-year 2023 financial results, reporting a net income of $121.3 billion, its second-highest ever net income.

Aramco’s net income was $121.3 billion in 2023, compared to $161.1 billion in 2022, representing Aramco’s second highest ever net income. The year-on-year decrease can be attributed to lower crude oil prices and volumes sold, as well as reduced refining and chemicals margins, partially offset by a decrease in production royalties during the year and lower income taxes and zakat.

Free cash flow reached $101.2 billion in 2023, compared to $148.5 billion in 2022. Aramco’s balance sheet remains strong and its gearing ratio* at the end of 2023 was -6.3%, compared to   -7.9% at the end of 2022.

Total dividends of $97.8 billion were paid in 2023, up 30% from 2022. Aramco declared a base dividend of $20.3 billion for the fourth quarter, to be paid in Q1 2024. In addition, the Board has approved the third distribution of performance-linked dividends in the amount of $10.8 billion.

Capital investments in 2023 reached $49.7 billion, including $42.2 billion organic capex. This represents a 28% increase from capital investments of $38.8 billion in 2022, including $37.6 billion organic capex. Aramco expects 2024 capital investments to be approximately $48 to $58 billion, growing until around the middle of the decade. The directive to maintain Maximum Sustainable Capacity at 12 million barrels per day, mainly from deferral of projects not yet commissioned and reductions in infill drilling, is expected to reduce capital investment by approximately $40 billion between 2024 and 2028.

Amin H. Nasser, Aramco President & CEO, 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.

“The recent directive from the government to maintain our Maximum Sustainable Capacity at 12 million barrels per day provides increased flexibility, as well as an opportunity to focus on increasing gas production and growing our liquids-to-chemicals business. At the same time, we continue to make progress on several strategic crude oil increments which will contribute to our reliability, operational flexibility and ability to seize market opportunities.

“In parallel, announcements of our first international investment in LNG, 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 capitalize on new market opportunities and advance our strategic objectives.”