Saudi Arabian Oil Co. · TADAWUL:2222
Saudi Arabian Oil — Saudi Aramco — H1 2023 Earnings Presentation
15 slides from Saudi Arabian Oil's earnings presentation, Aug 7, 2023
Slide 1: H1 2023 Results
H1 2023 Results August 7, 2023 Saudi Aramco H1 2023 Results | ‹#› Saudi Aramco: Company General Use
Slide 2: Cautionary notes
Cautionary notes This presentation may contain certain forward-looking statements with respect to The Saudi Arabian Oil Company’s ("Aramco" or the "Company" or "we") financial position, results of operations and business and certain of its plans, intentions, expectations, assumptions, goals and beli
Slide 3: Amin Nasser
Amin Nasser President & CEO Saudi Aramco H1 2023 Results | ‹#› Saudi Aramco: Company General Use
Slide 4: Strong returns and improving outlook
Strong returns and improving outlook Reliability and flexibility underpins strong profitability, cash flows and balance sheet Increasing near-term oil demand; confident in mid to long-term oil fundamentals Strong financial position and improved outlook supports further enhanced distributions1 1. Div
Slide 5: Progressing strategic delivery
Progressing strategic delivery Strategic milestones supported by significant capital investment program Upstream: oil and gas production expansion on track Downstream: major investments in Asia supporting liquids-to-chemicals program Low-carbon fuels & solutions: investments in renewables and furthe
Slide 6: Ziad Al-Murshed
Ziad Al-Murshed Executive Vice President & CFO Saudi Aramco H1 2023 Results | ‹#› Saudi Aramco: Company General Use
Slide 7: Key strategic achievements
Key strategic achievements • Oil expansion on track with first increments on-stream in two years • Invested in PV solar projects with capacity of 2.7GW • Dammam development with 25mbpd by 2024 and 50mpbd by 2027 • Converted oil derived from plastic waste into certified polymers1 Low-carbon in collab
Slide 8: H1 2023 operational and financial highlights
H1 2023 operational and financial highlights Operational Financial Hydrocarbon production Net income Capital investment4 mmboed1 $Bn $Bn 13.1 62.0 22.4 H1 2022: 13.3 H1 2022: 87.9 H1 2022: 17.3 Supply reliability2 Dividends paid Free cash flow3 $Bn $Bn 99.8% 39.0 54.1 H1 2022: 99.8 % H1 2022: 37.5 H
Slide 9: Financial results
Financial results Year-on-year Quarter-on-quarter Q-o-Q key drivers $Bn, unless otherwise indicated H1 2022 H1 2023 Q1 2023 Q2 2023 Lower crude oil prices Realized oil prices ($/bbl) 105.6 79.9 81.0 78.8 Hydrocarbon production Seasonally higher gas production (mmboed) 13.3 13.1 12.8 13.5 Downward pr
Slide 10: Oil demand growing with softer but improving economic growth forecasts
Oil demand growing with softer but improving economic growth forecasts Global GDP growth US inflation rate Oil demand (Real, year-on-year) (year-on-year) (mmbpd) Improving economic growth forecasts Inflation lowering, sentiment improving Higher oil demand growth expected in H2 2023 All items Rest of
Slide 11: Performance-linked dividends to share upside
Performance-linked dividends to share upside1 Sustainable and progressive base dividend – increasing from $75bn to $78bn Features of performance-linked dividends • To be targeted in the amount of 50 – 70% of Aramco’s annual free cash flow, net of the base dividend and other amounts including externa
Slide 12: Financial strength underpins increased distributions
Financial strength underpins increased distributions1 Earlier and increased distributions of performance-linked dividends • Based on combined annual results of 2022 and 2023 • At 70%, top of the announced range • Intended to be paid from Q3 2023 over six quarters First performance-linked dividends p
Slide 13: Delivering shareholder value through the cycle
Delivering shareholder value through the cycle Fiscal discipline Optimizing and diversifying financing Enhancing distributions1 Capex program delivering Optimize capital structure across cycle Track record of sustainable and growth and long-term value progressive dividend Robust: stress-tested retur
Slide 14: Questions & Answers
Questions & Answers Saudi Aramco H1 2023 Results | ‹#› Saudi Aramco: Company General Use
Slide 15: Saudi Aramco: Company General Use Saudi Aramco H1 2023 Results | ‹#›
Saudi Aramco H1 2023 Results | ‹#› Saudi Aramco: Company General Use