Company Reports

Aramco reported net income of $121.3 billion in 2023 compared with $161.1 billion the year prior due to lower oil prices and volumes as well as weaker refining and chemical margins. Total hydrocarbon volumes decreased to 12.8 million barrels of oil equivalent per day from 13.6 mmboe/d in 2022. Despite the decline in earnings, management increased the base quarterly dividend to $20.3 billion for the fourth quarter of 2023, to be paid in the first quarter of 2024. The firm will also pay a full-year performance-linked dividend for the second straight year, expected to be $43.1 billion in 2024, of which $10.8 billion will be paid in the first quarter. The regular quarterly and performance dividends imply a forward yield of 6.0%, bringing the payout more in line with peers.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Saudi Aramco's third-quarter net income fell to $32.6 billion from $42.4 billion the year before largely on lower oil prices and volumes. Total hydrocarbon volumes decreased to 12.8 million barrels of oil equivalent per day from 14.4 mmboe/d last year. Free cash flow decreased to $20.3 billion in the quarter from $45.0 billion in the prior year. Net debt fell to negative $33.0 billion from net debt of negative $32.7 billion at end-2022, but the gearing ratio rose to negative 7.6% from negative 7.9%. We maintain our fair value estimate of SAR 30.50 and wide moat rating for Aramco.

Saudi Aramco reported second-quarter net income fell to $30.1 billion from $48.4 billion the year before largely on lower oil prices and volumes. Total hydrocarbon volumes decreased to 13.5 million barrels of oil equivalent per day from 13.6 mmboe/d last year. Free cash flow decreased to $23.2 billion in the quarter from $54.1 billion the year prior. Net debt fell to negative $44.2 billion from net debt of negative $32.7 billion at end-2022 as the gearing ratio fell to negative 10.5% from negative 7.9%. We maintain our fair value estimate of SAR 30.50 and wide moat rating for Saudi Aramco.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Saudi Aramco reported first-quarter net income fell to $31.9 billion from $39.5 billion the year before largely on lower oil prices and volumes. Total hydrocarbon volumes decreased to 12.8 million barrels of oil equivalent per day from 13.0 mmboe/d last year. Free cash flow increased slightly to $30.9 billion in the quarter from $30.6 billion the year prior. Net debt fell to negative $42.6 billion from net debt of negative $32.7 billion at end-2022 as the gearing ratio fell to negative 10.3% from negative 7.9%.

Aramco’s size and cost position uniquely places it among all other publicly listed oil companies as the world’s largest oil producer. Its low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving it as the sole oil producer to earn a wide moat.

Aramco reported record net income of $161.1 billion compared with $110.0 billion for full-year 2021 on higher oil prices and volumes and stronger refining margins. Total hydrocarbon volumes increased to 13.6 mmboe/d from 12.3 mmboe/d in 2021 as crude production increased to 11.5 mmboe/d from 9.2 mmboe/d in 2021.

Aramco’s size and cost position uniquely places it among all other publicly listed oil companies as the world’s largest oil producer. Its low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving it as the sole oil producer to earn a wide moat.

Aramco reported net income of $42.4 billion during the during the third quarter on higher oil prices and volumes, up from $30.4 billion the year before but slightly lower than the record reported profits of $48.4 billion seen last quarter. Free cash flow increased to $45.0 billion in the quarter from $28.7 billion the year prior. Net debt and gearing fell to $30.8 billion and negative 4.1% respectively, from net debt of $56.4 billion and gearing of 12.0% at year-end 2021. Aramco paid $18.8 billion in dividends during the quarter, or $0.09 per share. Aramco provided no additional guidance on its plan to grow the dividend, but given previous commentary and its continued balance sheet improvements in the third quarter we anticipate a modest increase at least.

Aramco reported record net income of $48.4 billion during the second quarter compared with $25.5 billion the year before on higher oil prices and volumes and stronger refining margins. Free cash flow increased to $34.6 billion in the quarter compared with $22.6 billion the year before. Net debt and gearing fell to $35.20 billion and 7.9%, respectively, from a net debt of $56.4 billion and gearing of 14.2% at year-end 2021. Aramco paid $18.8 billion in dividends during the quarter, or $0.09 per share as well as the previously announced distribution of one bonus share for every 10 shares. Aramco reiterated it plans to grow the dividend over time with financial results, and the board will review the dividend with the full-year 2022 results in March 2023. We expect a modest increase at least, given the relatively low yield and balance sheet improvement.

Aramco’s size and cost position uniquely places it among all other publicly listed oil companies as the world’s largest oil producer. Its low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving it as the sole oil producer to earn a wide moat.

Aramco reported net income of $39.5 billion during the first quarter compared with $21.7 billion the year before on higher oil prices and volumes and stronger refining margins. Free cash flow increased to $30.6 billion in the quarter compared with $18.3 billion the year before. Net debt and gearing fell to $33.0 billion and 8.0%, respectively, from a net debt of $56.4 billion and gearing of 14.2% at year-end 2021. Aramco paid $18.8 billion in dividends during the quarter, or $0.09 per share. The regular dividend will likely remain unchanged in future quarters, but another special dividend like the one paid last year is likely given the strong financial performance. Also, Aramco approved the distribution of one bonus share for every 10 shares.

Aramco reported net income of $32.4 billion during the fourth quarter and $110.0 billion for full-year 2021 compared with $14.0 billion and $49.0 billion, respectively, the year before on higher oil prices and volumes, stronger refining and chemical margins, and inclusion of SABIC’s full-year results. Free cash flow increased to $107.5 billion in 2021 compared with $49.1 billion the year before, which more than covered the full-year dividend of $75.0 billion declared for 2021. Stronger cash flow generation during 2021 resulted in net debt and gearing falling to $56.4 billion and 14.2%, respectively, from a net debt of $87.7 billion and gearing of 23.0% at year-end 2020. Additionally, Aramco plans to pay out a special dividend of $4 billion in excess cash. The regular dividend component amounts to $0.38 per share, while the special dividend equals $0.02 per share. The combined $0.40 per share dividend lags peers that have announced additional share repurchases and dividend hikes.

Aramco’s size and cost position uniquely places it among all other publicly listed oil companies as the world’s largest oil producer. Its low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving it as the sole oil producer to earn a wide moat.

Aramco reported net income of $30.4 billion during the third quarter compared with $11.8 billion the year before on higher oil prices and volumes alongside stronger refining and chemical margins. During the quarter, economic activity rebounded and demand for petroleum products increased in lockstep with mobility following the end of lockdown restrictions. For Aramco, chemical demand remained robust. Free cash flow increased to $28.7 billion from $12.4 billion the year before, which more than covered the third-quarter dividend of $18.8 billion. Free cash flow through the first nine months of 2021 of $69.6 billion more than doubled compared with the year-ago period's $33.5 billion.

Saudi Aramco reported net income of $25.50 billion during the second quarter compared with $6.60 billion the year before on higher oil prices and stronger refining and chemical margins.

Aramco’s size and cost position uniquely places it among all other publicly listed oil companies as the world’s largest oil producer. Its low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving it as the sole oil producer to earn a wide moat.

Saudi Aramco reported net income of $21.7 billion for the first quarter compared with $16.7 billion the year before on higher oil prices and stronger chemical margins.

Aramco reported net income of $14.0 billion during the fourth quarter and $49.0 billion for full-year 2020 compared with $20.0 billion and $88.2 billion, respectively, the year before on lower oil prices and weaker refining and chemical margins. Free cash flow fell to $49.1 billion from $78.3 billion the year before, which was insufficient to cover the full-year $75.0 billion dividend declared for 2020.