Saudi Aramco issued its Q3 results, which show that the company’s net income amounted to SR122.2bn ($32.6bn) in the period, compared to SR159.1bn ($42.4bn) in Q3 of 2022.
It represents a reduction of 23 per cent on the previous year, due in large part to lower oil prices and volumes sold.
Cash flow from operating activities amounted to SR117.6bn ($31.4bn) in Q3 of 2023, compared to SR202.5bn ($54bn) in Q3 of 2022, and free cash flows reached SR76.3bn ($20.3bn) in Q3 of 2023, compared to SR168.6bn ($45bn) in Q3 of 2022.
Saudi Aramco profits
According to the report, the gearing ratio reached -7.6 per cent on September 30, 2023, compared to -7.9 per cent at the end of 2022, the Q2 of 2023 base dividend of SR73.2bn ($19.5bn) was paid in the third quarter, and the Q3 of 2023 base dividend of SR73.2bn ($19.5bn) will be paid in Q4.
The report also shows that the first performance-linked dividend distribution of SR37bn ($9.9bn) was paid in Q3, and the second distribution of SR37bn ($9.9bn) will be paid in Q4, based on the combined full-year 2022 and nine-month 2023 results.
According to the report, the company’s strategic expansion continues with agreement on the first international liquefied natural gas (LNG) investment; the company plans to enter South American market through a downstream retail acquisition.
The report shows that Saudi Aramco increases raw gas processing capacity by 800m standard cubic feet per day (mmscfd), including approximately 750 mmscfd of sales gas processing capacity, through Hawiyah Gas Plant expansion, and that the collaboration with Stellantis indicates eFuel compatibility with 24 engine families in Europe.
Aramco President and CEO Amin H. Nasser said: “Our robust financial results reinforce Aramco’s ability to generate consistent value for our shareholders, and we continue to identify new opportunities to evolve our business and meet the needs of customers.”
He added that during the third quarter, Aramco agreed to make its first international investment in liquefied natural gas (LNG) to capitalise on rising LNG demand, and announced its intention to enter the South American retail market.
These planned investments, Nasser said, demonstrate the scale of “our ambition, the broad scope of our activities, and the disciplined execution of our strategy”.
He added that the company’s progress will “complement both our upstream capacity expansion and our growing downstream presence”.
Nasser reiterated Aramco’s intention to continue investing across the hydrocarbon chain, “leveraging cutting-edge technologies to optimise operations and advance the development of emerging energy solutions”.
“It is an approach rooted in the company’s belief that a balanced and realistic energy transition plan should consider the needs of all geographies to avoid disparities between global energy consumers,” he said.
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