Saudi Arabian Oil Co. · TADAWUL:2222
Saudi Arabian Oil — Saudi Aramco — FY2023 Earnings Presentation
19 slides from Saudi Arabian Oil's earnings presentation, Mar 11, 2024
Slide 1: FY 2023 Results
FY 2023 Results March 11, 2024 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, President & CEO
Amin Nasser President & CEO Saudi Aramco: Company General Use
Slide 4: 2023: delivering value and high performance
2023: delivering value and high performance > World-leading 2023 net income of $121bn and free cash flow of $101bn, second highest ever > Delivering world-class projects to further enhance upstream advantages and integration opportunities > MSC1 12 Government directive, and gas production growth tar
Slide 5: Oil demand expected to remain strong with stable economic growth
Oil demand expected to remain strong with stable economic growth Global GDP growth (Real, year-on-year) Oil demand2 (mmbpd) Product demand (mmbpd) 2024 growth on par with 2023 Record oil demand expected in 2024 Liquids demand from petrochemicals 23% increase expected Actual Bloomberg poll (January 2
Slide 6: Significant conventional and lower-carbon energy investments
Significant conventional and lower-carbon energy investments Strategic driver Investment area Growth strategy Unique low-cost, lower-carbon ~ 3mmbpd Up to 1mmbpd intensity upstream advantage Liquids Current spare crude oil capacity1 Incremental associated liquids2 (2030) Building an integrated >60%
Slide 7: Providing an attractive combination of value and growth in the energy sector
Providing an attractive combination of value and growth in the energy sector Ability to generate high profitability and cash flows Sole upstream Favourable Economies control, ability Long-term Deployment Reservoir Flexibility from geology of scale to optimize focus of technology management spare cap
Slide 8: Ziad Al-Murshed, Executive Vice President & CFO
Ziad Al-Murshed Executive Vice President & CFO Saudi Aramco: Company General Use
Slide 9: Liquids: unique lower-cost, lower-carbon intensity upstream advantages
Liquids: unique lower-cost, lower-carbon intensity upstream advantages Opportunities for production and value growth Dammam Zuluf 50 mbpd > Maintaining MSC-12 in accordance with Government directive 600 mbpd 1 > FID’d projects remain on track Marjan 300 2027 > Optionality with project deferrals incl
Slide 10: Gas: increased growth with attractive returns and enhanced facilities
Gas: increased growth with attractive returns and enhanced facilities Continued strong delivery Implementing the gas strategy Conventional 2024 Hawiyah gas storage > Nine gas compression plants at Haradh & Hawiyah commissioned, Optimizing system design up to 2bscfd of sales gas with 1.3bscfd additio
Slide 11: Downstream: competitive global assets for value generation
Downstream: competitive global assets for value generation Capturing value from integration World-scale refining system Growing global traded volumes Accelerating lubricants growth Crude oil placement into Downstream (%) Global equity refining capacity6 (mmbpd) Crude and refined products (mmbpd) Fin
Slide 12: New energies: exploiting advantages through the transition
New energies: exploiting advantages through the transition Renewables Lower-carbon fuels CCS Capitalizing advantaged solar Optionality for carbon Developing a competitive, and wind resources in-Kingdom footprint reduction market-leading CCS business > Financial close of 30% stake > Prototype eFuels1
Slide 13: 2023 operational and financial performance
2023 operational and financial performance 2022 2023 2023 versus 2022 Operational highlights > Group net income down 25% Realized oil prices ($/bbl) 100.2 83.6 Hydrocarbon production (mmboed1) 13.6 12.8 > Lower Upstream and Downstream EBIT Liquids (mmbpd) 11.5 10.7 Gas (bscfd) 10.6 10.7 > Capital in
Slide 14: Disciplined investment in accretive growth opportunities
Disciplined investment in accretive growth opportunities Capital investments1 ($Bn) Growing until 70 around middle of decade > Investing in unique opportunities with 60 48-58 accretive returns 50 49.7 > c.$40bn capex reduced between 2024-2028 0.6 from MSC-12 directive 40 38.8 16.2 0.5 > Near-term in
Slide 15: A robust financial framework with world-class distributions
A robust financial framework with world-class distributions Disciplined capital investments Clear distribution framework Strong balance sheet Sustaining capex Base dividend1 Growth capex Performance- Further debt linked dividend1 reduction > Ensuring safe, > Provides downside > 28% y/y increase in >
Slide 16: Unrivaled distributions leveraged by Aramco's robust earnings
Unrivaled distributions leveraged by Aramco’s robust earnings Performance-linked dividend calculation1 $bn 100 $bn FY 2022 FY 2023 Combined Operating cash 186.2 143.4 329.6 flow 19.8 Capital expenditure 37.6 42.2 79.9 9.9 Q4 + 9% External 80 1.2 5.8 6.9 9.9 10.8 investments2 Q4 9.9 Base dividend 75.
Slide 17: Aramco's attractive investor proposition delivers value through cycles
Aramco’s attractive investor proposition delivers value through cycles Sustained competitive advantages Sustainable growth Unique scale, proximity and full control of upstream assets Capturing growth in value chain and new energies High flexibility and reliability; low cost, low depletion and lower
Slide 18: Questions & Answers
Questions & Answers Saudi Aramco: Company General Use
Slide 19: Saudi Aramco: Company General Use
Saudi Aramco: Company General Use