“Aramco” achieves savings of 10.5 billion riyals, targets profits of 15 billion annually from cooperative projects

Saudi Aramco revealed that it has made two advance payments and a scheduled payment in 2023 to fully settle the deferred financial consideration related to the SABIC acquisition deal. Making these payments resulted in savings for Saudi Aramco amounting to 10.5 billion riyals ($2.8 billion), indicating that this comes in order to reduce the debt ratio in the company’s financial position.

According to the company’s Board of Directors report published on the Tadawul Financial Market website, in 2023, Saudi Aramco continued to demonstrate its financial flexibility while expanding the scope of the ongoing implementation of the largest capital program in its history. Capital expenditures reached 158.3 billion Saudi riyals ($42.2 billion) in 2023, an increase of 12.1% over last year. It is expected that capital expenditures will continue to rise until the middle of the current decade, and expansion work will also continue to increase crude oil production to maintain the maximum sustainable production capacity at 12.0 million barrels per day in accordance with government directives, in light of continuing to implement long-term investments. Through the stages of the hydrocarbon chain, in order to realize value from the expected growth in demand.

She added that with the progress of its capital program, its efforts continue to maintain a high-class investment credit rating and improve the company’s capital structure, which remains one of the foundational matters for implementing its financial strategy.

In support of Saudi Aramco’s growth ambitions and moving forward with its strategy of converting liquids into chemicals, it has completed the acquisition of Valvoline’s global products business in a move that complements the range of premium branded lubricants products produced by Saudi Aramco. It has also completed the acquisition of a 10% stake in Rongsheng Petrochemicals in China, in line with its goal of strengthening its refining, chemicals and marketing businesses in high-growth geographies.

In addition to these investments, the SABIC acquisition deal in 2020 continues to support growth in the refining, chemicals, marketing, and value creation sectors. Indicating that Aramco targets profits ranging from 11.3 billion riyals to 15 billion riyals from cooperative projects annually by 2025.