Saudi Arabian Oil Co. · TADAWUL:2222
Saudi Arabian Oil — Saudi Aramco — FY2022 Earnings Presentation
23 slides from Saudi Arabian Oil's earnings presentation, Mar 13, 2023
Slide 1: FY 2022 Results
FY 2022 Results March 13, 2023 Saudi Aramco FY 2022 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 Aramco’s plans, intentions, expectations, assumptions, goals and
Slide 3: Amin Nasser, President & CEO
Amin Nasser President & CEO Saudi Aramco FY 2022 Results | ‹#› Saudi Aramco: Company General Use
Slide 4: Aramco: delivering on its advantaged position
Aramco: delivering on its advantaged position • 2022 net income of $161bn and free cash flow of $149bn, both records since IPO • Increased production, maintained flexibility and reliability through changing market conditions • Executing largest capital expenditure program in our history with key mil
Slide 5: Oil demand expected to grow despite macro downside risks
Oil demand expected to grow despite macro downside risks US inflation rate1 World GDP growth2 Oil demand3 Brent oil price2 (year-on-year) (Real, year-on-year) (mmbpd)4 ($/bbl) Inflation is easing, Economic growth forecasts Oil demand still expected Oil price volatility but remains high being revised
Slide 6: Need for further investment to meet demand
Need for further investment to meet demand Natural production decline impacting supply An industry in need of investment Oil supply outlook1 (mmbpd)2 Global oil capital expenditure 4 ($bn) 120 700 Demand scenarios3 600 100 c. 100 mmbpd current demand Estimated capex required to meet expected 500 202
Slide 7: Sustainably supplying reliable, affordable energy
Sustainably supplying reliable, affordable energy Long-term, prudent reservoir management Investing for technical excellence Enduring competitive advantage Upstream Carbon Intensity1 (kgCO2e/boe) 56 Major oil and gas producers4 Upstream cost2 Bubble size = reserve life3 (years) ($/boe) Source: Compa
Slide 8: Resilient growth strategy to maximize long-term value
Resilient growth strategy to maximize long-term value Strategic drivers Growth strategy Expanding production capacity to 13mmbpd1 by 2027; Crude oil leveraging our low-cost, low upstream carbon intensity crude oil Industry underinvestment Expanding gas production by more than 50% by 20302; Gas furth
Slide 9: Oil: growth to capture unique opportunities and generate shareholder value
Oil: growth to capture unique opportunities and generate shareholder value Investing in additional capacity Delivering MSC-131 Aramco MSC1 evolution target (mmbpd)2 (mbpd)2 25 50 250 300 600 700 2024 2027 2025 2025 2026 From 2027 Dammam Dammam Berri Marjan Zuluf Safaniya3 MSC 13.0 Zuluf Marjan Safan
Slide 10: Gas: growth from captive demand, supporting KSA decarbonization
Gas: growth from captive demand, supporting KSA decarbonization Significant need for gas Delivering the gas strategy Haradh, Hawiyah, Tanajib >50% target gas production growth1 by 2030 Conventional From 2023 Compression of 1.3 bscfd raw gas; processing of 3.7 bscfd raw gas4,5 From Jafurah Unconventi
Slide 11: Downstream: de-risking upstream and balancing our portfolio
Downstream: de-risking upstream and balancing our portfolio Downstream capturing integration benefits Increasing placement to lower-emission markets Crude oil into downstream operations (%) IHS forecast of global refinery output by 2050 (%) +6 44% 38% Fuel & 72%-78% Others2 85% Chemicals 15% 22%-28%
Slide 12: Low-carbon energy: supporting a stable energy transition
Low-carbon energy: supporting a stable energy transition Near-term projects CCUS Target to capture Aiming to be a under design leveraging up to 11 mmtCO2e1 global leader unique reservoirs for by 2035 CO2 sequestration Target up to Blue Hydrogen World’s first commercial 11 mmtpa3 Pioneering the use b
Slide 13: Committed to the long-term transition and social responsibility
Committed to the long-term transition and social responsibility Decarbonization targets enabling transition Growing societal value Ambition: Upstream carbon 10.7 10.3 -15% Enabling domestic c.44% c.63% 70% intensity 1 2021 2022 (by 20352 vs. 2018) industry through 2016 2022 Target4 (kgCO2e/boe) IKTV
Slide 14: Maximizing long-term value: investing in our growing, integrated portfolio
Maximizing long-term value: investing in our growing, integrated portfolio Producer of choice Reliable, affordable, sustainable Supply chain Oil resilience MSC-131 Lower-cost resource Higher-value markets Localization Through-cycle Gas >50%2 target growth by 2030 investment Strong balance sheet Wher
Slide 15: Ziad Al-Murshed, Executive Vice President & CFO
Ziad Al-Murshed Executive Vice President & CFO Saudi Aramco FY 2022 Results | ‹#› Saudi Aramco: Company General Use
Slide 16: Strategic achievements
Strategic achievements • Expansion of MSC to 13mmbpd on track • Joint agreement with Ministry of Energy to construct one of world’s largest CCUS hubs in Jubail • Manifa awarded Upstream Project of the Year at 2022 Middle East Energy Awards • SABIC & SASREF received independent certifications for Low
Slide 17: 2022 operational and financial highlights
2022 operational and financial highlights Operational Financial Hydrocarbon production Net income Capital expenditure 1 mmboed $Bn $Bn 13.6 161.1 37.6 FY 2021: 12.3 FY 2021: 110.0 FY 2021: 31.9 Supply reliability2 Dividends paid Free cash flow3 $Bn $Bn 99.9% 75.0 148.5 FY 2021: 99.9% FY 2021: 75.0 F
Slide 18: Financial results: 2022 versus 2021
Financial results: 2022 versus 2021 $Bn, unless otherwise indicated 2021 2022 Key drivers Realized oil prices ($/bbl) 70.5 100.2 • Higher crude oil prices Hydrocarbon production (mmboed1) 12.3 13.6 • Higher volumes Upstream EBIT 200.0 291.3 Downstream EBIT 16.6 21.1 • Stronger refining and trading m
Slide 19: Investing in growth opportunities
Investing in growth opportunities Capex ($Bn) 70 Growing until around middle of decade 60 45-55 Low-cost, low upstream carbon 50 intensity advantages at scale 40 37.6 Advantaged and unique 0.5 31.9 opportunities 30 0.6 7.9 7.7 Growth in oil, gas, liquids-to- 20 chemicals and low-carbon fuels & 29.3
Slide 20: Confidence in underlying free cash flow growth supports progressive dividend
Confidence in underlying free cash flow growth supports progressive dividend Growth strategy in oil, gas, downstream and low carbon fuels and solutions ‒ Expected to deliver significant growth in sustainable long-term future free cash flow Strength of balance sheet ‒ Protects growth capital spending
Slide 21: Delivering shareholder value through the cycle
Delivering shareholder value through the cycle Fiscal discipline Financial strength Dividends Capex program delivering Maintain discipline and strong Sustainable & progressive growth and long-term value investment grade rating dividend policy Robust: stress-tested returns Optimize capital structure
Slide 22: Questions & Answers
Questions & Answers Saudi Aramco FY 2022 Results | ‹#› Saudi Aramco: Company General Use
Slide 23: aramco
aramco