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CEO video remarks: Full-year 2023 results
“Our intention is to play a key role in the energy transition through the deployment of technologies and tools that can contribute to global emission reduction efforts.”
His Excellency Yasir O. Al-Rumayyan, Chairman of the Board of Directors
“We believe Aramco is well positioned to actively participate in addressing the world’s growing need for affordable and reliable energy.”
Amin H. Nasser, President & CEO
Download Chairman and CEO's message
Highlights
Reflecting on another year of success and achievements in 2023
Q1
Acquired Valvoline Inc.’s global products business
Aramco completed its acquisition of Valvoline Inc.’s global products business for approximately SAR 10.34 billion ($2.76 billion), including customary adjustments.
$7.0 billion petrochemical steam cracker
Aramco and its affiliate, S-OIL, commenced construction at the SAR 26.3 billion ($7.0 billion) Shaheen project in South Korea to develop one of the world’s largest refinery-integrated petrochemical steam crackers.
Integrated refinery and petrochemical complex
Construction commenced at the SAR 44.4 billion ($11.8 billion) integrated refinery and petrochemical complex being developed by HAPCO, a joint venture between Aramco, North Huajin, and Panjin Xincheng.
Q2
Hawiyah Unayzah Gas Reservoir Storage
Hawiyah Unayzah Gas Reservoir Storage, the first underground natural gas storage in the Kingdom, achieved its maximum injection target of 1.5 bscfd.
Solar projects partnership
Aramco entered into a shareholders’ agreement with PIF and ACWA Power Company for the development of the Al Shuaibah 1 and Al Shuaibah 2 photovoltaic solar projects which are expected to have a combined capacity of 2.66 GW and an estimated cost of SAR 8.9 billion ($2.37 billion).
Performance-linked dividends
Aramco introduced performance-linked dividends to support its aim to deliver a balanced mix of growth and yield to shareholders.
Amiral EPC contracts awarded
Aramco awarded engineering, procurement, and construction contracts for the SAR 41.3 billion ($11.0 billion) new petrochemical complex to be built by SATORP, Aramco’s joint venture with TotalEnergies.
Largest voluntary carbon auction
Aramco participated as a lead bidder in the largest-ever voluntary carbon credit auction, held by the Regional Voluntary Carbon Market Company (RVCMC) in Nairobi, Kenya.
Three blue ammonia shipments
Aramco delivered three shipments of accredited blue ammonia through its affiliates ATC and SABIC Agri-Nutrients.
Q3
Novel nonmetallic factory begins operations
Novel Non-Metallic Solutions (Novel), a joint venture between Aramco and Baker Hughes to develop and commercialize a broad range of nonmetallic products, commenced operations in Saudi Arabia.
Hawiyah Gas Plant expansion
The Hawiyah Gas Plant expansion was successfully commissioned and brought onstream, increasing the plant’s raw gas processing capacity by 800 mmscfd including approximately 750 mmscfd of natural gas capacity.
Rongsheng Petrochemical deal completed
Aramco completed its strategic acquisition of a 10% interest in Rongsheng Petrochemical with a right to supply 480 mbpd or 60% of the crude oil for a total transaction value of SAR 12.8 billion ($3.4 billion).
Hadeed divestment
SABIC agreed to the sale of its 100% shareholding in the Saudi Iron and Steel Company (Hadeed) to PIF.
South America retail investment
Aramco agreed to purchase a 100% equity stake in the Chilean retailer Esmax, representing Aramco’s first downstream retail investment in South America. The transaction was completed in March 2024.
International LNG investment
Aramco announced its first international investment in LNG by signing definitive agreements to acquire a strategic minority stake in MidOcean Energy for SAR 1.88 billion ($0.5 billion).
Q4
First unconventional gas production
Aramco successfully produced its first unconventional tight gas from its South Ghawar operational area.
Gas discoveries
Aramco discovered two natural gas fields in the Empty Quarter.
First entry into the Pakistani fuels retail market
Aramco signed definitive agreements to acquire a 40% equity stake in Gas & Oil Pakistan Limited.
Global Lighthouse Network status
The Yanbu’ Refinery becomes the fourth Aramco facility to receive WEF Global Lighthouse Network status.
Gas compression projects onstream
Nine plants were placed onstream completing the gas compression projects at the Haradh and Hawiyah fields.
Our strategy
Aramco’s strategy is driven by its belief that reliable and affordable energy supplies, including oil and gas, will be required to meet the world’s growing energy demand, and that new lower-carbon energy supplies will gradually complement conventional sources.
Aramco continues to work to achieve further reductions in greenhouse gas emissions from its oil and gas operations. Aramco also invests in technologies and solutions supporting the global energy and materials transition towards a lower-carbon emissions future. The world’s demand for affordable, reliable, and more sustainable energy will continue to grow, and Aramco believes it can best be met by a broad mix of energy solutions.
Within this context, Aramco’s vision is to be the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable and reliable manner.
Aramco strives to provide reliable, affordable and more sustainable energy to communities around the world, and to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals, aiming to capture value across the energy value chain and profitably growing its portfolio.
To achieve its vision, Aramco focuses on four strategic themes across its businesses:
Upstream preeminence
As the principal engine of value generation, Aramco intends to maintain its position as the world’s largest crude oil company by production volume and one of the lowest-cost producers. The Company’s vast reserves base, spare capacity, and unique operational flexibility allow it to effectively respond to changes in demand.
“Upstream successfully commissioned long-term projects, progressed multiple growth projects including the Middle East’s largest shale gas development, made multiple discoveries, and initiated our first global liquefied natural gas investment, while delivering safe and reliable operations.”
Nasir K. Al-Naimi, Upstream President
Downstream integration
Aramco has a dedicated system of domestic and international wholly-owned and affiliated refineries that are critical to monetizing its upstream production. Through continued strategic integration, the Company captures additional value across the hydrocarbon chain.
“Downstream made strategic investments and partnerships in key global markets, commenced construction of new refining and petrochemical complexes, and continued to deliver on its transformation program.”
Mohammed Y. Al Qahtani, Downstream President
Lower-carbon initiatives
Aramco aims to lower the net carbon emissions of its operations and support the global energy transition through development of a New Energies business that includes renewable power generation and lower-carbon products and solutions across the energy, chemicals, and materials sectors.
Localization and the promotion of national champions
Aramco facilitates the development of a diverse, more sustainable, and globally competitive in-Kingdom energy ecosystem to underpin the Company’s competitiveness and support the Kingdom’s economic development.
Our performance
FY 2023 Financial Highlights
1. Capital expenditures do not include external investments.
2. Earnings per share have been adjusted to reflect the effect of the bonus shares issuance.
* Non-IFRS measures: refer to “Non-IFRS measures reconciliations and definitions” for further details.
Net income (billion)
$121
2022: $161
SAR 455
EBIT* (billion)
$231
2022: $307
SAR 865
Free cash flow* (billion)
$101
2022: $149
SAR 380
Net cash provided by operating activities (billion)
$143
2022: $186
SAR 538
Capital expenditures1 (billion)
$42
2022: $38
SAR 158
ROACE* (%)
2022: 31.6
22.5
Dividends paid (billion)
$98
2022: $75
SAR 367
Dividends paid per share
$0.41
2022: $0.35
SAR 1.55
Gearing* (%)
2022: (7.9)
(6.3)
Earnings per share (basic and diluted)
$0.50
2022: $0.662
SAR 1.87
Average realized crude oil price ($/barrel)
2022: 100.2
83.6
FY 2023 Operational Highlights
3. Total liquids is comprised of crude oil, NGL and condensate.
4. Excludes SABIC Agri-Nutrients and Metals (Hadeed) businesses.
5. Applies to Saudi Arabian Oil Company (the Company).
6. Refer to Section 3: Sustainability in the 2023 Annual Report for further information.
MSC (mmbpd)
2022: 12.0
12.0
Total hydrocarbon production (mmboed)
2022: 13.6
12.8
Total liquids production3 (mmbpd)
2022: 11.5
10.7
Net refining capacity (mmbpd)
2022: 4.1
4.1
Net chemicals production capacity4 (million tons per year)
2022: 56.3
59.6
Reliability5 (%)
2022: 99.9
99.8
Upstream carbon intensity6 (kg CO2e/boe)
2022: 10.3
10.7
Flaring intensity6 (scf/boe)
2022: 4.60
5.64
Total recordable case rate6 (per 200,000 work hours)
2022: 0.050
0.042
“We continued to demonstrate our financial flexibility as we scaled up the ongoing implementation of the largest capital program in our Company’s history.”
Ziad T. Al Murshed, Executive Vice President & Chief Financial Officer