Saudi Aramco, the state-backed oil giant, has reported a 25% decline in profits to $121bn in 2023. This decrease, attributed to production cuts and falling oil prices, marks the second-highest profit ever for the company. Shareholders can expect higher dividends this year, with a 30% increase to $98bn compared to 2022.
Despite the challenges faced in 2023, Saudi Aramco’s CEO Amin Nasser remains optimistic about the company’s future. Nasser highlighted the company’s resilience and agility in maintaining healthy cash flows and profitability. He also mentioned Saudi Aramco’s plans to invest in China, where there is a growing demand for oil.
Saudi Arabia, the world’s largest oil exporter, is seeking to diversify its economy using revenue from the energy sector. An announcement is expected this year regarding investments in renewables in Saudi Arabia, an important step towards a more sustainable future.
Looking ahead to 2024, Nasser predicts a “fairly robust” oil market with slightly higher demand than the previous year. This positive outlook bodes well for Saudi Aramco and the global oil industry as a whole.
Overall, Saudi Aramco’s ability to adapt to changing market conditions and its strategic investments position the company well for continued success in the years to come.
