Saudi Aramco said on Sunday that its 2023 profits were 24.7% less than the previous year’s due to weaker oil prices and output reductions.
In 2023, the oil giant’s net income was 454.7 billion Saudi riyals ($121.25 billion), down from 604.01 billion Saudi riyals ($161.07 billion) in 2022, according to a filing with the Saudi stock market.
“The decrease mainly reflects the impact of lower crude oil prices and lower volumes sold, and weakening refining and chemicals margins,” Aramco said.
Oil prices surged after Russia invaded Ukraine in February 2022, reaching a peak of more than $130 per barrel throughout that year.
With what it called record profits for 2022, Aramco provided the kingdom with its first annual budget surplus in almost a decade.
“In 2023 we achieved our second-highest ever net income. Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds,” Aramco CEO Amin H. Nasser said in a statement.
“We also delivered for our shareholders with a 30% year-on-year increase in total dividends paid in 2023,” he added.
Prices fell to $85 per barrel last year, which caused Aramco to see year-over-year profit declines of 23% in the third quarter, 38% in the second, and 19% in the first quarter.
