Dhahran, , Aug 7 (SPA/APP): According to the second quarter and half year interim report for 2023 issued today by Aramco, the company delivered strong profitability and cash flows, enabled by low-cost production and high supply reliability; it registered a net income of $30.1 billion in Q2 and $62.0 billion in the first half of 2023.
According to the report, cash flows from operating activities amounted to $33.6 billion in Q2 and $73.3 billion in H1 of 2023, free cash flows amounted to $23.2 billion in Q2 and $54.1 billion in H1 of this year, and gearing ratio decreased to -10.5% as the balance sheet continues to strengthen.
The report showed sustainable and progressive dividend, with a $19.5 billion base dividend in Q1 of 2023 paid in Q2, up 4.0% year-on-year, and a $19.5 billion dividend in Q2 of 2023 to be paid in Q3.
According to the report, the company intends to distribute performance-linked dividends over six quarters, from Q3 of 2023. The first distribution is estimated to be of approximately $9.9 billion in Q3 of 2023, based on combined full-year 2022 results and half-year 2023 results.
The report shows that upstream oil and gas developments are on track, including the Marjan, Berri, Dammam, and Zuluf crude oil increments, as part of broader capacity expansions.
It also shows that downstream growth strategy advances with the award of engineering, procurement and construction contracts for the $11.0 billion Amiral petrochemicals complex.
According to the report, accredited lower-carbon ammonia shipments were dispatched to key markets, supporting the development of decarbonization options.
“Our strong results reflect our resilience and ability to adapt through market cycles. We continue to demonstrate our long-standing ability to meet the needs of customers around the world with high levels of reliability. For our shareholders, we intend to start distributing our first performance-linked dividend in the third quarter,” Aramco President & CEO Amin H. Nasser said, commenting on the results.
“At Aramco, our mid to long-term view remains unchanged. With a recovery anticipated in the broader global economy, along with increased activity in the aviation sector, ongoing investments in energy projects will be necessary to safeguard energy security,” Nasser said, adding: “We are maintaining the largest capital spending program in our history, with the aim of increasing our oil and gas production capacity and expanding our downstream business with petrochemicals projects, such as our $11.0 billion expansion of the SATORP refinery with TotalEnergies, essential to meet future demand.”
While expressing optimism about the potential of new technologies to reduce the operational emissions and “our recent blue ammonia shipments to Asia”, which, Nasser said, “highlight the growing market interest in the potential of alternative, lower-carbon energy solutions”.
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