Aramco, the Saudi Arabian oil giant, announced its financial results for the year 2023, revealing a net income of $121.3 billion.
While this marks a decrease from the previous year’s $161.1 billion, it still stands as the company’s second-highest ever net income. The decline is attributed to lower crude oil prices and volumes sold, along with reduced refining and chemicals margins.
Capital investments for the year reached $49.7 billion, showing a significant increase of 28 percent compared to the previous year’s $38.8 billion. This includes $42.2 billion in organic capital expenditure, reflecting the company’s commitment to growth and development.
Looking ahead, Aramco anticipates capital investments for 2024 to range between $48 to $58 billion, with a trajectory of growth until the middle of the decade. Efforts to maintain Maximum Sustainable Capacity at 12 million barrels per day are expected to reduce capital investment by approximately $40 billion between 2024 and 2028 through deferral of projects and reductions in infill drilling.
Operational highlights for 2023 include an average hydrocarbon production of 12.8 million barrels of oil equivalent per day, with 10.7 million barrels per day of total liquids. Aramco maintained its exceptional supply reliability, achieving a 99.8 percent reliability rate in delivering crude oil and other products throughout the year.
The company also made progress on various projects aimed at enhancing operational flexibility and capturing value from increased global demand. These include the Marjan, Berri, Dammam, and Zuluf crude increment projects, as well as gas projects targeting a more than 60 percent increase in gas production by 2030.
In a significant move, Aramco announced its first international investment in liquefied natural gas (LNG) by acquiring a strategic minority stake in MidOcean Energy, pending regulatory approvals. Additionally, contracts were awarded for the $11.0 billion Amiral complex, a petrochemicals facility expansion in Jubail, Saudi Arabia.
Aramco’s President & CEO, Amin H. Nasser, emphasized the company’s resilience and agility in achieving strong financial performance despite economic challenges. Nasser reiterated the company’s focus on capital expenditures to drive future growth and its belief in the continued importance of oil and gas in the global energy mix alongside emerging energy solutions.