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Saudi Aramco has reported a sharp drop in profits, after the energy giant cut production and oil prices fell sharply in 2023.
Its profits fell 25% to $121bn (£91bn) after a record year in 2022.
But the figure is still the second-highest profit ever made by the state-backed company.
The company said it was increasing its payouts to shareholders and seeking opportunities to invest in China.
Dividends will rise to $98 billion, an increase of almost a third compared to 2022, when it made a record profit of $161 billion, thanks to the impact Russia’s war in Ukraine was having on stock prices. energy. Oil prices will reach $130 a barrel in 2022.
The Saudi state owns almost 95% of the company, so the huge profits resulted in a budget surplus for the kingdom in 2022.
In 2023, oil prices fell again to $85 a barrel. Additionally, Saudi Aramco has cut its production to help support the price of oil, posing an additional challenge to earnings.
“In 2023 we achieved our second-highest net income in our history. Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a challenging economic backdrop,” said Aramco CEO Amin Nasser. it’s a statement.
Saudi Arabia aims to diversify the country’s economy, using revenue from its energy sector to finance the transition.
Nasser said the company would make some announcements this year about investments in renewable energy in Saudi Arabia.
But he also said the oil giant was looking for opportunities to invest in China, where demand for oil was growing.
“So far we are in the first part of 2024, demand is healthy and growing in China,” Nasser told reporters.
Saudi Aramco already has investments in Chinese refineries.
He said he expects the oil market to be “pretty strong” in 2024, with demand slightly higher than last year.
He also said talks were underway about a share in the partnership with French carmaker Renault and China’s Geely, which make hybrid car engines.