Saudi Arabian oil company #Saudi Aramco announced today the results of the second quarter and the first half of 2023, through which the company achieved profitability and strong cash flows based on its low production cost and high supply reliability, indicating that net income amounted to 112.8 billion riyals (second quarter), and 232.4 billion riyals in the (first half).
"Saudi Aramco" pointed out that cash flows from operating activities amounted to 126.1 billion riyals in the second quarter, which amounted to 274.7 billion riyals in the first half, while free cash flows amounted to 86.8 billion riyals in the second quarter and 202.7 billion riyals in the first half, in addition to the reduction of the debt ratio, which reached -10.5% as the financial position continued to strengthen.
It reported achieving sustainable and increasing profits and basic dividends for the first quarter of 2023 of 73.2 billion riyals, which were paid in the second quarter, an increase of 4% year-on-year, and will also pay dividends for the second quarter of 2023 of 73.2 billion riyals in the third quarter, indicating the company's intention to distribute performance-related profits over a period of six quarters starting from the third quarter of 2023, where the first distribution is about 37.0 billion riyals in the third quarter of 2023, based on the full annual results of 2022 and the results of the first half of 2023.
The company indicated that the development of crude oil and gas exploration and production is moving forward and includes increasing crude oil production in the Marjan, al-Bari, Dammam and dhaluf fields, as part of measures to increase production capacity on a large scale, and the growth strategy in the refining, chemicals and marketing sector is progressing with the award of engineering, procurement and construction contracts at the Admiral petrochemical complex worth 41.3 billion riyals, and sending certified shipments of low-carbon ammonia to key markets to support the development of decarbonization options.
Amin Hassan Al Nasser, president and Chief Executive Officer of Saudi Aramco, said:" Our strong financial results reflect our flexibility and ability to adapt during market fluctuations, and we continue to demonstrate our long-term ability to meet the needs of customers around the world with high levels of reliability, and for our shareholders, we intend to start distributing the first performance-related dividends in the third quarter.
"Our medium-to-long-term outlook remains unchanged, and with the widely expected recovery of the global economy, coupled with increased activity in the aviation sector, continued investments in energy projects will be necessary to protect Energy Security,"Nasser added.
"Saudi Aramco will continue to work on the largest capital expenditure program in the company's history, with the aim of increasing crude oil and gas production capacity and expanding business in the refining, chemical and marketing sectors through petrochemical projects, such as the expansion of the SATORP refinery worth 41.3 billion riyals with total energy, which is necessary to meet future demand," the president said.
"We remain optimistic about the potential of new technologies to reduce emissions from our operational business, and the recent shipments of blue ammonia to Asia highlight the growing market interest in the potential of low-carbon alternative energy solutions,"said Eng.