Saudi Aramco, the state-owned oil giant, reported a 24.7% decline in net profit to $121.3 billion in 2023, down from $161.1 billion in 2022. Despite lower oil prices and volumes, the figure marked the company’s second-highest net income on record. Aramco declared a total dividend of $97.8 billion for the year, reflecting a significant 30% increase, emphasizing the continued reliance of the Saudi government on Aramco’s payouts, which constitute a substantial portion of state revenues. Saudi Arabia, the world’s leading oil exporter, faces economic challenges in diversifying its economy away from oil dependence, despite lower oil prices impacting Aramco’s profits.
The Saudi government’s Vision 2030 initiative, aimed at economic diversification, relies on generous dividends from Aramco, of which the government directly holds about 82.2%. Aramco’s dividends, including base and performance-linked components, demonstrate the state’s continued emphasis on oil revenue. The base dividend for Q4 2023 was $20.3 billion, reflecting a 4% year-on-year increase, while performance-linked dividends are expected to reach $43.1 billion in 2024. The capital investment forecast for the year ranges from $48 billion to $58 billion, underscoring Aramco’s commitment to supporting Saudi Arabia’s economic agenda.