Saudi Aramco has been hit hard by the drop in crude oil prices

2023, a tough year for Aramco?

In 2023, Aramco, 90% owned by the Saudi state, reported a significant drop in profits which fell 24.7% to $121.25 billion from $161.07 billion in 2022. As the oil giant itself points out: “ The decline mainly reflects the impact of lower crude oil prices and weaker refining and chemicals margins. ” However, this is “ Second highest historical profit », welcomed CEO, Amin Nasser.

It must be said that the price of oil, which reached a peak of $ 130 per barrel in 2022 after Russia’s invasion of Ukraine and the post-Covid recovery, remained high in 2023: $ 88 per barrel. Crude. We remember that the increase is essentially due to the OPEC countries, who do not hesitate to limit their oil production to raise prices. As a result, and despite the decline in its profits, Aramco increased its dividend by +30% compared to 2022. A way for the monarchy to ensure attractive returns for its shareholders.

Saudi Arabia’s new ambitions

Beyond the immediate challenges, Aramco, and more broadly, Saudi Arabia, is projecting itself into the future with ambitious initiatives unveiled in its Vision 2030 program. Saudi Arabia wants to be a leader not only in the oil sector, but also in the world. in clean and renewable technologies. To do this, the Vision 2030 project aims to diversify the state’s economy to reduce its dependence on oil. Like the United Arab Emirates, Lithium extraction is prioritized

An essential component for the production of electric car batteries, and which so far mainly comes from Chile and China.

Saudi Arabia also transferred 8% of Aramco shares to the monarchy’s Public Investment Fund (PIF). The objective is to finance new projects that can develop the region, especially through tourism, and make the state a business hub like Dubai (United Arab Emirates). The transfer will be partly dedicated to building a futuristic city called Neom that will see the light of day by 2030.