Saudi Aramco Boosts Dividends Despite Decline in Profits
Despite experiencing a significant drop in profits due to reduced production and falling oil prices in 2023, Saudi Aramco remains resilient, reporting the second-highest profit in its history.
The energy giant revealed a 25% decline in profits, amounting to $121 billion, following a record-breaking year in 2022. However, this figure still stands as one of the company’s most substantial earnings to date.
In response to the challenging economic climate, Saudi Aramco announced a remarkable increase in dividends, raising them to $98 billion, marking a nearly one-third rise compared to the previous year. This decision aims to prioritize shareholders amidst the profit decline.
Despite the profit setback, Saudi Aramco remains committed to seeking growth opportunities, particularly in China. The company intends to explore investments in renewables within Saudi Arabia, aligning with the kingdom’s efforts to diversify its economy away from reliance on the energy sector.
Aramco’s Chief Executive Officer, Amin Nasser, emphasized the company’s resilience and adaptability in navigating economic headwinds, contributing to robust cash flows and profitability.
Looking ahead, Nasser highlighted the potential for investments in China, where oil demand continues to rise steadily. Saudi Aramco already holds investments in Chinese refineries and seeks further opportunities to expand its presence in this burgeoning market.
Additionally, discussions are underway regarding potential partnerships, including a stake in a collaboration between French carmaker Renault and China’s Geely, focusing on hybrid car engines. These strategic moves reflect Saudi Aramco’s commitment to growth and diversification amid evolving market dynamics.
