Online Desk: Saudi Aramco has reported a net income of 121.3 billion US dollars in 2023, a 24.7 per cent fall from its 2022 record due to lower oil prices.

The year-on-year decrease can be attributed to lower crude oil prices and volumes sold, as well as to reduced refining and chemicals margins and partially offset by a decline in production royalties during the year, said the company on Sunday.

The oil giant posted a profit of 161.1 billion dollars in 2022, reports Xinhua.

Aramco President and CEO Amin Nasser said that in 2023, the company achieved the second-highest ever net income and delivered a 30 percent year-on-year increase in total dividends paid to shareholders.

He said the company’s capital expenditures increased “as we seek to create and capture additional value from our operations,” which positions 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.”

“A recent government directive to hold our oil production steady at 12 million barrels per day offers us a strategic advantage. This flexibility allows us to prioritize expanding natural gas production and growing our chemicals business, which converts liquids into valuable products,” he added.

Free cash flow reached 101.2 billion dollars in 2023, compared to 148.5 billion dollars in 2022, according to the company.

Aramco’s balance sheet remains strong, and its gearing ratio at the end of 2023 was -6.3 per cent, compared to -7.9 per cent at the end of 2022.

Total dividends of 97.8 billion dollars were paid in 2023, up by 30 percent from 2022.

Aramco declared a base dividend of 20.3 billion dollars for the fourth quarter, to be paid in Q1 2024.

In addition, the board approved the third distribution of performance-linked dividends, amounting to 10.8 billion dollars.

Capital investments in 2023 reached 49.7 billion dollars, including 42.2 billion dollars in organic capex.

Aramco expects 2024 capital investments to be approximately 48-58 billion dollars, growing until the middle of the decade.