Aramco, the Saudi oil giant, announced on Sunday a $121 billion profit in 2023, down from its record high of $161 billion in 2022, due to lower crude oil prices and volumes sold, according to the Associated Press (AP).
Aramco reported second-highest ever net income and increased dividends to over $31 billion in the fourth quarter.
Moreover, the company plans to hold a conference call on Monday to discuss its results.
In 2023, Aramco, under the directive of the Saudi government and as part of the OPEC+ alliance, produced 12.8 million barrels of oil per day to boost global oil prices, yet reported a revenue drop to $440 billion from $535 billion in 2022, while Brent crude traded under $82 a barrel.
Aramco has a market value of $2 trillion, making it the world’s fourth-most valuable firm, behind Apple, Microsoft, and NVIDIA. Aramco stock rose slightly on the Tadawul at $8.64 a share on Sunday.
Saudi Arabia’s crown prince, Mohammed bin Salman, hopes to use the oil wealth to diversify the kingdom’s economy and invest in projects such as Neom, a $500 billion futuristic desert city. However, activists have criticised the profits amid concerns about climate change.
On Thursday, the prince transferred another 8 per cent of Aramco shares to the country’s sovereign wealth fund, worth over $160 billion. The majority of the company is still owned by the royal family, with a small portion traded on the stock market.
