Saudi Aramco increases dividends to $98 billion despite falling profits
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Revenue of the Saudi oil and gas company Saudi Aramco in 2023 decreased by 17%, amounting to $440.9 billion. Net profit fell by almost 25%, to $121.3 billion. At the same time, Aramco announced a 30% increase in dividends for last year: it will pay shareholders $97.8 billion. About 82% of shares The company is owned by the government of Saudi Arabia, another 16% is owned by the sovereign investment fund Public Investment Fund.
As is the case with other oil and gas companies, Aramco’s deterioration is associated with general trends in the oil market. If in 2022 profits grew amid rising prices due to the military conflict in Ukraine, then in 2023 there was a price correction. The Saudi company’s CEO, Amin Nasser, noted “geopolitical instability, economic difficulties and inflationary pressures” had impacted the market over the past year.
Aramco’s free cash flow in 2023 fell by almost 32%, to $101.2 billion. Capital expenditures increased by 28%, amounting to $49.7 billion. The company also confirmed that it would suspend plans to increase oil production from 12 million barrels per day to 13 million. As a result, Aramco expects capital expenditures to decline to approximately $40 billion per year between 2024 and 2028.
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