Aramco announced a $121 billion profit for the previous year, a decrease from its record-breaking $161 billion in 2022, reflecting its dominance in the global oil market

The profit decline is mainly due to lower energy prices resulting from ongoing production cuts by OPEC+ members. These cuts aim to stabilize global energy prices but have impacted Aramco’s earnings. The reduced profits pose challenges for Saudi Arabia as it progresses with diversifying its economy and reducing reliance on oil revenues.

The kingdom, led by its assertive crown prince, aims to transition away from oil due to the volatility of oil revenues. Aramco’s filing to the Tadawul stock market outlines factors contributing to profit decline, including lower crude oil prices, reduced sales volumes, and declining margins in refining and chemicals. These challenges mirror global energy sector trends like geopolitical tensions and the shift to renewable energy sources.

Get More Details at Officially published documents.

Despite lower profits, Aramco’s decision to increase dividends to over $31 billion in the fourth quarter shows its commitment to investors. This move aims to reassure investors amid uncertainties in global energy markets and the broader economy.