Aramco records strong Q2 performance despite challenges in global oil prices


Despite the decrease in global crude oil prices in Q2 of 2023, Aramco has recorded a strong financial performance in the same period, driven by efficient low-cost production and supply reliability

However, recent developments in the oil market, particularly Saudi Arabia's agreed production cuts, add complexity to the overall picture.

A key highlight of Aramco's performance is its net income figures. Aramco's Q2 and H1 2023 results showcase a resilient industry leader. Bolstered by low-cost production and supply reliability, it reports a net income of US$30.1bn (Q2) / US$62bn (H1) and strong cash flows: US$33.6bn (Q2) / US$73.3bn (H1). 

Q1's US$19.5bn base dividend (up 4% YoY) is followed by Q2's, with a plan to introduce performance-linked dividends from Q3 2023.

Strategically, Aramco advances on upstream and downstream fronts. Progress on projects such as Marjan, Berri, Dammam, and Zuluf crude oil increments demonstrates a forward-looking capacity expansion. The Marjan and Berri crude oil increments are anticipated to contribute 300mn bpd and 250mn bpd of production capacity by 2025, respectively. Additionally, the Dammam development project aims to add 25mn bpd and 50mn bpd of crude oil by 2024 and 2027, while the Zuluf crude oil increment is poised to establish a central facility processing 600mn bpd of crude oil from the Zuluf field by 2026. 

In June, Aramco and TotalEnergies jointly awarded engineering, procurement, and construction contracts amounting to SAR 41.3 billion (US$11bn) for the Amiral complex. This upcoming petrochemicals facility expansion, located within the Saudi Aramco Total Refining & Petrochemical Company (SATORP) refinery in Jubail, Saudi Arabia, is set to significantly bolster regional capacity. SATORP will own and manage this new complex, which is slated to feature one of the largest mixed-load steam crackers in the area, capable of producing 1.65 million tons per annum of ethylene and other vital industrial gases. The petrochemicals complex is anticipated to commence commercial operations in 2027.

Commenting on the results, Aramco president & CEO, Amin H. Nasser, said, “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."

Read more on Aramco's quarterly earnings here.