Aramco boosts dividend despite drop in 2023 profit

Saudi Arabia's state-owned oil giant Aramco said on Sunday it boosted its dividends last year despite net profit falling to $121.3 billion from a record $161.1 billion in 2022 on lower oil prices.

The profit was still the company's second-highest on record, it said.
 
Aramco boosted total dividends for the year by 30 percent to $97.8 billion.

Aramco declared a base dividend, paid regardless of results, of $20.3 billion for the fourth quarter, to be paid this quarter. It approved a $10.8 billion performance-linked dividend, the third such payout. Both dividends were increased from the previous quarter.

The company said capital investments were at $49.7 billion in 2023, including $42.2 billion in organic capital expenditure. That was up from $38.8 billion in capital investments and $37.6 billion organic capex in 2022.

It forecasts capital investments between $48 billion and $58 billion this year, growing until the middle of the decade.

The Saudi government in late January ordered Aramco to scrap its expansion plan to boost production capacity to 13 million barrels a day (mbpd), returning to the previous 12 mbpd target.

The decision "is expected to reduce capital investment by approximately $40 billion between 2024 and 2028," Aramco said.

Its free cash flow fell to $101.2 billion in 2023 from $148.5 billion in 2022.

Reuters