Saudi Aramco, the world’s largest oil producer, reported a net profit of $121.3 billion in 2023, a 24% decline from $161.1 billion reported in 2022.

The profit drop was mainly due to a fall in crude oil prices and volumes sold, reduced refining and chemicals margins, partially offset by a decrease in production royalties and lower income taxes and zakat.

Revenue fell 17.6% year-on-year (YoY) to SAR 1.65 trillion.

The oil giant paid total dividends of $97.8 billion in 2023, an increase of 30% from 2022. It declared a base dividend of $20.3 billion for the fourth quarter, to be paid in Q1 2024.  

The full-year performance-linked dividend to be paid in 2024 is expected to be $43.1 billion, including the $10.8 billion in Q1 2024, based on the previously announced mechanism and subject to board approval.

Free cash flow reached $101.2 billion in 2023, compared to $148.5 billion in 2022. Capital investments reached $49.7 billion last year, up 28% YoY.

“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,” Amin H. Nasser, President & CEO, Aramco, said.

(Editing by Seban Scaria seban.scaria@lseg.com)