The Saudi Arabian Oil Co., commonly known as Aramco, reported net income of $121.3 billion in 2023, second only to the $161.1 billion of net income in 2022.

The year-on-year decline was due to lower crude oil prices and volumes sold and lower refining and chemicals margins. These were partially offset by lower production royalties, lower income taxes and zakat, a religious obligation to donate to charitable causes, Aramco announced in a March 10 press release.

The Saudi energy giant also reported operating cash flow of $143.4 billion in 2023 compared to $186.2 billion in 2022, as well as free cash flow of $101.2 billion in 2023 compared to $148.5 billion in 2022.

Aramco’s total dividends were $97.8 billion in 2023, up 30% compared to 2022. In the fourth quarter of 2023, the company declared a base dividend of $20.3 billion to be paid in the first quarter of 2024.

“Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds. We also delivered for our shareholders with a 30% year-on-year increase in total dividends paid in 2023,” said Aramco President and CEO Amin H. Nasser.

Aramco’s capex reached $49.7 billion in 2023, up 28% compared to $38.8 billion in 2022. Capex is expected to come in between $48 billion-$58 billion in 2024, growing until around the middle of the decade.

The directive to maintain maximum sustainable capacity at 12 MMbbl/d, mainly from deferral of projects not yet commissioned and reductions in infill drilling, will result in a $40 billion reduction in capex between 2024 and 2028, Aramco said.

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