Aramco reports 24.7% drop in profits for 2023

Saudi Arabia's state-owned oil company, Aramco, announced on Sunday a 24.7% decline in its profits for 2023, attributing the contraction to falling crude oil prices and production cuts.

Aramco, a flagship of the Saudi economy, stated in a press release that its profits reached 454.7 billion Saudi riyals (approximately $121.25 billion) in 2023, compared to a record of 604.01 billion riyals (approximately $161.07 billion) the previous year.

"The decrease primarily reflects the impact of declining crude oil prices and weakening margins for refining and chemicals," Aramco stated in the release.

Like other giants in the sector, Aramco had achieved record profits last year as oil prices soared to $130 per barrel due to Russia's invasion of Ukraine in February 2022 and the post-Covid economic recovery. However, oil prices fell to $85 per barrel last year, weighed down by the risk of global recession, which affects demand outlooks.

Nevertheless, Aramco recorded its "second-highest historical profits" in 2023, noted Aramco's CEO, Amin Nasser, announcing a 30% increase in dividends to shareholders compared to the previous year.