Saudi Aramco, the state-backed energy giant, reported a 25% decline in profits to $121 billion in 2023 after a record-breaking year in 2022. Despite the decrease, this figure still represents the second-highest profit ever for the company. The company attributed the decline to reduced production and the sharp fall in oil prices throughout the year, with prices dropping from $130 to $85 a barrel.
Amidst the decrease in profits, Saudi Aramco announced plans to increase dividends to shareholders to $98 billion, a rise of almost a third from the previous year. The company also revealed its intention to invest in China as part of its strategy to diversify the country’s economy and fund the transition away from a reliance on the energy sector. Additionally, they mentioned potential developments in renewables investments within Saudi Arabia and partnerships with Chinese companies to capitalize on the growing demand for oil in the region.
CEO Amin Nasser expressed optimism for 2024, stating that demand for oil remains healthy and is expected to be only marginally higher than the previous year. He also hinted at discussions regarding potential collaborations with French carmaker Renault and China’s Geely to produce hybrid car engines, reflecting Saudi Aramco’s efforts to expand its investments and partnerships beyond traditional oil production.
