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1、Aramco announces third quarter 2023 resultsCompany continues to deliver robust earnings while progressing its growth strategy“Our robust financial results reinforce Aramcos ability to generate consistent value for our shareholders,and we continue to identify new opportunities to evolve our business
2、and meet the needs of customers.“During the third quarter we agreed to make our first international investment in liquefied natural gas(LNG)to capitalize on rising LNG demand,and announced our intention to enter the South American retail market.These planned investments demonstrate the scale of our
3、ambition,the broad scope of our activities,and the disciplined execution of our strategy.I am excited by the progress we are making,which I believe will complement both our Upstream capacity expansion and our growing Downstream presence.“We intend to continue investing across the hydrocarbon chain,l
4、everaging cutting-edge technologies to optimize our operations and advance the development of emerging energy solutions.It is an approach rooted in our belief that a balanced and realistic energy transition plan should consider the needs of all geographies,in order to avoid disparities between globa
5、l energy consumers.”Key financial resultsThird quarter ended September 30Nine months ended September 30SARUSD*SARUSD*All amounts in millions unless otherwise stated20232022202320222023202220232022Net income 122,188159,11532,58342,430354,540488,78494,544130,342EBIT1233,523301,81062,27380,482667,23390
6、9,618177,929242,565Capital expenditures41,35433,89511,0289,038113,39097,42330,23725,979Free cash flow176,280168,61720,34144,965278,966413,27474,392110,207Dividends paid110,18170,32929,38218,754256,491210,98868,39856,263ROACE1,2 23.4%32.6%23.4%32.6%23.4%32.6%23.4%32.6%Average realized crude oil price
7、($/barrel)n/an/a89.3101.7n/an/a82.9104.3*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.1.Non-IFRS measure:refer to Non-IFRS measures reconciliations and definitions section for further details.2.Calculated on a 12-month rolling basis.Amin H.N
8、asserPresident and CEO Net income:$32.6 billion(Q3 2022:$42.4 billion)Cash flow from operating activities:$31.4 billion(Q3 2022:$54.0 billion)Free cash flow1:$20.3 billion(Q3 2022:$45.0 billion)Gearing ratio1:-7.6%as at September 30,2023,compared to-7.9%at end of 2022 Q2 base dividend of$19.5 billio
9、n paid in the third quarter;Q3 base dividend of$19.5 billion to be paid in the fourth quarter First performance-linked dividend distribution of$9.9 billion paid in Q3;second distribution of approximately$9.9 billion to be paid in Q4 based on combined full-year 2022 and nine-month 2023 results Strate
10、gic expansion continues with agreement on first international LNG investment,and plan to enter South American market through a downstream retail acquisition Company increases raw gas processing capacity by 800 million standard cubic feet per day(mmscfd),including approximately 750 mmscfd of sales ga
11、s processing capacity,through Hawiyah Gas Plant expansion Collaboration with Stellantis indicates eFuel compatibility with 24 engine families in Europe 2Saudi AramcoThird quarter and nine months interim report 2023Third quarter highlights Aramco announced its first international investment in LNG by
12、 signing definitive agreements to acquire a strategic minority stake in MidOcean Energy for SAR 1.88 billion($0.5 billion).The agreements include the option for Aramco to increase its shareholding and associated rights in MidOcean Energy in the future.Completion of the transaction is subject to clos
13、ing conditions which include regulatory approvals.DownstreamAramcos Downstream segment continued its efforts to further integrate across the hydrocarbon value chain,leverage the potential of its products in order to meet anticipated demand for petrochemical products,and expand its business in key gl
14、obal markets.During the quarter,the Company continued to demonstrate its excellent track record of dependable operations,achieving 99.8%supply reliability.In the first nine months of the year,Downstream utilized approximately 45%of Aramcos crude oil production.Key Downstream developments include the
15、 following:SABIC,a subsidiary of Aramco,agreed to the sale of all its shares in the Saudi Iron and Steel Company(Hadeed)to PIF.The transaction,which is subject to certain customary approvals and satisfaction of certain conditions,will enable SABIC to optimize its portfolio,focus on its core business
16、,and support its vision to become the preferred world leader in chemicals.The transaction is expected to be completed in the first quarter of 2024;Aramco agreed to purchase a 100%equity stake in the Chilean retailer Esmax Distribuscin SpA(Esmax)from Southern Cross Group,representing the Companys fir
17、st downstream retail investment in South America.The transaction,which is subject to certain customary conditions including regulatory approvals,would Global crude oil market conditions strengthened in the third quarter despite continued inflationary pressures as strong demand and reduced inventorie
18、s lifted crude oil prices.As a result of this increase,along with improved refining margins,the Companys low-cost Upstream operations and its strategically integrated Downstream business,Aramco delivered robust earnings and free cash flow.In line with its aim to maximize shareholder returns,the Comp
19、any declared a base dividend of SAR 73.2 billion($19.5 billion)for the third quarter.As announced earlier this year,Aramco also intends to share additional upside with investors through performance-linked dividends to be calculated based on the Groups combined full-year results for 2022 and 2023.The
20、se are intended to be paid over six quarters,and the first distribution was paid in the third quarter of 2023.The Board has approved the second distribution of these performance-linked dividends in the amount of SAR 37.0 billion($9.87 billion)calculated based on the full-year results of 2022 and the
21、 nine-month results for the period ended September 30,2023.This second distribution will be made in the fourth quarter and subsequent distributions are expected to be adjusted to reflect the remaining results for 2023.Aramco believes energy demand is likely to increase over the mid-to long-term and
22、is investing in its growing,integrated portfolio through the largest capital program in its history.During the quarter,capital expenditures were SAR 41.4 billion($11.0 billion),reflecting Aramcos intention to meet rising demand by capturing unique investment opportunities.UpstreamIn the third quarte
23、r,Aramco delivered total hydrocarbon production of 12.8 mmboed through continued reliable and efficient operations.The Company also progressed the strategic expansion of its MSC to 13.0 mmbpd by 2027 through ongoing engineering,procurement,and construction activities related to the following project
24、s:The Marjan and Berri crude oil increments,which are expected to be onstream by 2025 and add production capacity of 300 mbpd and 250 mbpd,respectively;The Dammam development project,which is expected to add crude oil production of 25 mbpd in 2024 and 50 mbpd in 2027;and,The Zuluf crude oil incremen
25、t,which is expected to process 600 mbpd of crude oil from the Zuluf field through a central facility by 2026.Aramco believes gas will be important in meeting the worlds rising need for secure,accessible,and more sustainable energy.During the quarter,the Company progressed its gas expansion strategy
26、to meet growing domestic demand through ongoing projects,and took a first step towards becoming a leading global liquefied natural gas(LNG)player.The Hawiyah Gas Plant expansion,part of the Haradh gas increment program,was successfully commissioned and brought onstream,increasing the Plants raw gas
27、processing capacity by 800 mmscfd which includes approximately 750 mmscfd of sales gas processing capacity.Commissioning activities for the gas compression projects at the Haradh and Hawiyah fields are in advanced stages of completion,with eight of the nine plants commissioned and the final plant ex
28、pected to be fully onstream in 2023.3Saudi AramcoThird quarter and nine months interim report 2023Sustainability As part of its sustainability framework,Aramco seeks to develop lower-carbon solutions and noncombustible uses for its products,and invest in the development of lower greenhouse gas emiss
29、ions technologies.Subsequent to its announcement in the second quarter,Aramco completed the financial close of the Al Shuaibah 1 and Al Shuaibah 2 photovoltaic solar projects.The projects,which will be jointly owned by Aramco(30.0%),PIF(34.99%)and ACWA Power Company(35.01%),have an estimated total c
30、ost of SAR 8.9 billion($2.37 billion)and are expected to have combined capacity of 2.66 GW.These projects align with Aramcos intention to invest in solar and wind energy in support of the Kingdoms National Renewable Energy Program.Extensive testing of Aramco-provided surrogate eFuels has determined
31、that advanced eFuels can be compatible with 24 engine families in Europe and used as a drop-in technology without powertrain modifications.The testing was completed through a partnership with Stellantis over several months at their technical centers across Europe.The surrogate eFuels used in the tes
32、ting exhibit the expected characteristics of the fuels to be produced at Aramcos planned synthetic fuels demonstration plants in Saudi Arabia and Spain.The use of eFuels could potentially result in a reduction of CO2 emissions from existing internal combustion vehicles by at least 70%on a life cycle
33、 basis compared to conventional fuels.Novel Non-Metallic Solutions(Novel),a joint venture between Aramco and Baker Hughes to develop and commercialize a broad range of nonmetallic products,has commenced operations from its nonmetallic production facility at King Salman Energy Park in the Eastern Pro
34、vince of Saudi Arabia.The Novel facility produces a nonmetallic reinforced thermoplastic(RTP)pipe and has an annual production capacity of 1,000 kilometers.The Novel RTP pipe is corrosion resistant,lighter,enable Aramco to secure outlets for its refined products,create a platform to launch the Aramc
35、o brand in South America while strengthening its downstream value chain,and unlock new market opportunities for its Valvoline-branded lubricants;and Aramco signed a cooperation framework agreement with Jiangsu Eastern Shenghong Company Limited(Eastern Shenghong)and a Memorandum of Understanding(MoU)
36、with Shandong Yulong Petrochemical Company Limited(Shandong Yulong).The agreement and MoU are expected to facilitate discussions of acquiring 10%strategic equity interests in each of Shenghong Petrochemical Industry Group Company Limited(Shenghong Petrochemical),a wholly-owned subsidiary of Eastern
37、Shenghong,and in Shandong Yulong.Under these potential transactions,it is intended that Aramco would have the right to supply both companies with crude oil and possibly other feedstocks.Shenghong Petrochemical owns and operates a 320 mbpd integrated refinery and petrochemicals complex and other faci
38、lities,and Shandong Yulong is currently in the process of completing the construction of a refining and petrochemicals complex designed to process approximately 400 mbpd of crude oil.These transactions are subject to due diligence,negotiation of transaction documents,and required regulatory clearanc
39、es.These opportunities are expected to support Aramcos efforts to increase the conversion of liquids-to-chemicals and expand into high-growth and strategic geographies.more durable,and easier to install than conventional steel pipe,reducing its cost and carbon footprint across the life cycle.Aramco
40、has utilized RTP pipes at its facilities since 2015,and the Novel joint venture supports its efforts to localize its supply chain and help build a thriving in-Kingdom energy value chain.Aramco has been exploring multiple early-stage greenhouse gas emissions reduction initiatives during the quarter r
41、elated to lower-carbon hydrogen,direct air capture of CO2,an innovative approach to CO2 storage that involves dissolving CO2 in water and injecting it into volcanic rock,and assessing potential geothermal resources on the west coast of Saudi Arabia.It is believed these initiatives,if they prove succ
42、essful,could potentially help support Aramcos ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050.4Saudi AramcoThird quarter and nine months interim report 2023 All amounts in millions unless otherwise statedFinancial performanceS
43、ummary of financial performanceThird quarterNine monthsSARUSD*SARUSD*All amounts in millions unless otherwise stated2023202220232022%change2023202220232022%changeIncome before income taxes and zakat238,373302,27963,56680,607(21.1)%685,038909,890182,677242,637(24.7)%Income taxes and zakat(116,185)(14
44、3,164)(30,983)(38,177)(18.8)%(330,498)(421,106)(88,133)(112,295)(21.5)%Net income122,188159,11532,58342,430(23.2)%354,540488,78494,544130,342(27.5)%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.Financial ResultsKey factors affecting Aramcos
45、financial results Aramcos results of operations and cash flows are primarily driven by market prices and volumes sold of hydrocarbons as well as refined and chemicals products.Ongoing economic uncertainty resulted in lower prices for hydrocarbons and lower refining and chemicals margins,compared to
46、the same period in 2022.In January 2023,Aramco received a payment of SAR 15.6 billion($4.2 billion)related to the financing arrangement with the Jazan Integrated Gasification and Power Company(JIGPC).This is the second of three payments to be received by Aramco as a result of this transaction.The re
47、maining amount of SAR 2.0 billion($0.5 billion)is expected to be received by the end of the year.With respect to the deferred consideration related to the SABIC acquisition,the Company made payments in the amount of SAR 59.0 billion($15.7 billion),SAR 41.3 billion($11.0 billion)and SAR 16.7 billion(
48、$4.5 billion),resulting in the full settlement of the deferred consideration.These payments resulted in a decrease in total borrowings and cash and cash equivalents,and a gain of SAR 5.8 billion($1.5 billion).With regards to Aramcos acquisition of a 10%equity interest in Rongsheng Petrochemical in J
49、uly 2023,Aramco recognized an equity investment at fair value through other comprehensive income within investments in securities of SAR 6.4 billion($1.7 billion),and a non-current other asset of SAR 6.0 billion($1.6 billion)relating to a payment made for the long-term sales agreement.This acquisiti
50、on aligns with Aramcos strategic goal to enhance its Downstream business in high-growth geographies and advance its liquids-to-chemicals strategy.In relation to SABICs agreement to sell its 100%shareholding in Hadeed to PIF,the assets and liabilities of Hadeed were remeasured and classified as held
51、for sale as at September 30,2023.As a result,a loss on fair value measurement of SAR 3.2 billion($0.85 billion)was recognized in the condensed consolidated statement of income.The agreement will enable SABIC to optimize its portfolio by focusing on its core business and further advancing its vision
52、to become the preferred world leader in chemicals.Third quarterIncome before income taxes and zakat for the third quarter of 2023 was SAR 238,373($63,566),compared to SAR 302,279($80,607)for the same quarter in 2022.The decrease principally reflects the impact of lower crude oil prices and volumes s
53、old.This was partially offset by a reduction in production royalties primarily driven by lower average effective royalty rate,lower crude oil prices,and lower volumes sold.Income taxes and zakat for the third quarter of 2023 were SAR 116,185($30,983),compared to SAR 143,164($38,177)for the same quar
54、ter in 2022.This decrease was mainly driven by lower earnings in the third quarter of 2023.Nine monthsIncome before income taxes and zakat for the first nine months of 2023 was SAR 685,038($182,677),compared to SAR 909,890($242,637)for the same period in 2022.The decrease was largely attributable to
55、 lower crude oil prices and weakening refining and chemicals margins.This was partially offset by a decrease in production royalties,primarily due to lower average effective royalty rate and lower crude oil prices,and higher finance and other income.Income taxes and zakat for the first nine months o
56、f 2023 were SAR 330,498($88,133),compared to SAR 421,106($112,295)for the same period in 2022.The decrease largely resulted from lower earnings in the first nine months of 2023.For non-IFRS measures,refer to the Non-IFRS measures reconciliations and definitions section.5Saudi AramcoThird quarter and
57、 nine months interim report 2023 All amounts in millions unless otherwise statedThird quarterNine monthsSARUSD*SARUSD*All amounts in millions unless otherwise stated2023202220232022%change2023202220232022%changeEarnings before interest,income taxes and zakat227,371293,99660,63278,399(22.7)%655,10585
58、2,261174,695227,270(23.1)%Capital expenditures-cash basis33,69327,2098,9857,25623.8%90,34476,77024,09220,47217.7%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.Upstream financial performanceThird quarterEarnings before interest,income taxes a
59、nd zakat(EBIT)for the third quarter of 2023 was SAR 227,371($60,632),compared to SAR 293,996($78,399)for the same quarter in 2022.The decrease in EBIT resulted from both lower average realized crude oil prices and lower volumes sold,partially offset by a decrease in production royalties.Capital expe
60、nditures for the third quarter of 2023 were SAR 33,693($8,985),an increase of 23.8%compared to SAR 27,209($7,256)for the same period in 2022.This increase was primarily due to progression of crude oil increments to expand the MSC,and ongoing development of gas projects to increase gas production cap
61、acity.Nine months EBIT for the first nine months of 2023 was SAR 655,105($174,695),compared to SAR 852,261($227,270)for the same period in 2022.This decrease was primarily due to a decline in average realized crude oil prices,partially offset by lower production royalties.Capital expenditures for th
62、e first nine months of 2023 were SAR 90,344($24,092),an increase of 17.7%compared to SAR 76,770($20,472)for the same period in 2022.The increase was largely due to the development of crude oil increments related to raising crude oil MSC,and continued advancement of multiple gas projects.Downstream f
63、inancial performance Third quarterNine monthsSARUSD*SARUSD*All amounts in millions unless otherwise stated2023202220232022%change2023202220232022%changeEarnings(losses)before interest,income taxes and zakat19,739(4,246)5,264(1,132)564.9%35,52581,7749,47321,806(56.6)%Capital expenditures-cash basis7,
64、0566,3651,8821,69710.9%21,78319,4045,8095,17412.3%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.Third quarterEBIT for the third quarter of 2023 was a profit of SAR 19,739($5,264),compared to a loss of SAR 4,246($1,132)for the same quarter in
65、 2022.This increase was primarily driven by inventory valuation movement.Capital expenditures for the third quarter of 2023 were SAR 7,056($1,882),an increase of 10.9%compared to SAR 6,365($1,697)for the same period in 2022,primarily due to growth project developments.Nine months EBIT for the first
66、nine months of 2023 was SAR 35,525($9,473),compared to SAR 81,774($21,806)for the same period in 2022.This decrease was primarily driven by inventory valuation movement and lower refining and chemicals margins.Capital expenditures for the first nine months of 2023 were SAR 21,783($5,809),an increase
67、 of 12.3%compared to SAR 19,404($5,174)for the same period in 2022.This was primarily due to increased investments and expansion.6Saudi AramcoThird quarter and nine months interim report 2023 All amounts in millions unless otherwise statedNon-IFRS measures reconciliations and definitionsThis Interim
68、 Report includes certain non-IFRS financial measures(ROACE,free cash flow,gearing,and EBIT),which Aramco uses to make informed decisions about its financial position and operating performance or liquidity.These non-IFRS financial measures have been included in this Interim Report to facilitate a bet
69、ter understanding of Aramcos historical trends of operation and financial position.Aramco uses non-IFRS financial measures as supplementary information to its IFRS-based operating performance and financial position.The non-IFRS financial measures are not defined by,or presented in accordance with,IF
70、RS.The non-IFRS financial measures are not measurements of Aramcos operating performance or liquidity under IFRS and should not be used instead of,or considered as alternatives to,any measures of performance or liquidity under IFRS.The non-IFRS financial measures relate to the reporting periods desc
71、ribed in this Interim Report and are not intended to be predictive of future results.In addition,other companies,including those in Aramcos industry,may calculate similarly titled non-IFRS financial measures differently from Aramco.Because companies do not necessarily calculate these non-IFRS financ
72、ial measures in the same manner,Aramcos presentation of such non-IFRS financial measures may not be comparable to other similarly titled non-IFRS financial measures used by other companies.Twelve months ended September 30SARUSD*All amounts in millions unless otherwise stated2023202220232022Net incom
73、e469,761610,182125,270162,714Finance costs,net of income taxes and zakat4,3965,2141,1731,391Net income before finance costs,net of income taxes and zakat474,157615,396126,443164,105As at period start:Non-current borrowings319,952421,99885,320112,533Current borrowings70,321115,28718,75230,743Total eq
74、uity1,618,2121,231,404431,523328,375Capital employed 2,008,4851,768,689535,595471,651As at period end:Non-current borrowings227,787319,95260,74385,320Current borrowings57,26270,32115,27018,752Total equity1,754,5131,618,212467,870431,523Capital employed2,039,5622,008,485543,883535,595Average capital
75、employed2,024,0241,888,587539,739503,623ROACE23.4%32.6%23.4%32.6%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.ROACEROACE measures the efficiency of Aramcos utilization of capital.Aramco defines ROACE as net income before finance costs,net o
76、f income taxes and zakat,as a percentage of average capital employed,calculated on a 12-month rolling basis.Average capital employed is the average of total borrowings plus total equity at the beginning and end of the applicable period.Aramco utilizes ROACE to evaluate managements performance and de
77、monstrate to its shareholders that capital has been used effectively.ROACE for the 12 months ended September 30,2023,was 23.4%,compared to 32.6%for the same period in 2022.The decrease in ROACE,calculated on a 12-month rolling basis,was primarily attributable to lower earnings principally reflecting
78、 the decline in crude oil prices,weakening refining and chemicals margins,and higher average capital employed during the period.7Saudi AramcoThird quarter and nine months interim report 2023 All amounts in millions unless otherwise statedAramco uses free cash flow to evaluate its cash available for
79、financing activities,including dividend payments.Aramco defines free cash flow as net cash provided by operating activities less capital expenditures.Free cash flow for the third quarter of 2023 was SAR 76,280($20,341),compared to SAR 168,617($44,965)for the same quarter in 2022.This decrease of SAR
80、 92,337($24,624)was largely due to lower net cash provided by operating activities resulting from lower earnings and unfavorable movements in working capital.This was partially offset by a reduction in cash paid for the settlement of income,zakat and other taxes.Capital expenditures increased by SAR
81、 7,459($1,990)in the third quarter of 2023,compared to the same period in 2022,primarily due to progression of crude oil increments to expand the MSC,and ongoing development of gas projects to increase gas production capacity.Free cash flow for the first nine months of 2023 was SAR 278,966($74,392),
82、compared to SAR 413,274($110,207)for the same period in 2022.The decrease of SAR 134,308($35,815)was primarily attributable to lower net cash provided by operating activities resulting from lower earnings,partially offset by favorable movements in working capital and lower cash paid for the settleme
83、nt of income,zakat and other taxes.Capital expenditures for the first nine months of 2023 increased by SAR 15,967($4,258)compared to the same period in 2022,largely due to the development of crude oil increments related to raising crude oil MSC,and continued advancement of multiple gas projects.Free
84、 cash flowThird quarterNine monthsSARUSD*SARUSD*All amounts in millions unless otherwise stated20232022202320222023202220232022Net cash provided by operating activities117,634202,51231,36954,003392,356510,697104,629136,186Capital expenditures(41,354)(33,895)(11,028)(9,038)(113,390)(97,423)(30,237)(2
85、5,979)Free cash flow76,280168,61720,34144,965278,966413,27474,392110,207*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.GearingGearing is a measure of the degree to which Aramcos operations are financed by debt and reflects available liquidity
86、 held in current and non-current investments and cash management instruments.Aramco defines gearing as the ratio of net(cash)/debt(total borrowings less cash and cash equivalents,short-term investments,investment in debt securities(current and non-current),and non-current cash investments)to total e
87、quity and net(cash)/debt.Management believes that gearing is widely used by analysts and investors in the oil and gas industry to indicate a companys financial health and flexibility.Aramcos gearing ratio as at September 30,2023,was(7.6)%compared to(7.9)%as at December 31,2022.This increase was prim
88、arily due to higher total equity,partially offset by an increase in net(cash).The increase in net(cash)was mainly attributable to a reduction in total borrowings driven by repayment of the deferred consideration related to the SABIC acquisition,partially offset by lower cash and cash equivalents and
89、 short-term investments.SARUSD*All amounts in millions unless otherwise statedSeptember 30,2023December 31,2022September 30,2023December 31,2022Total borrowings(current and non-current)285,049393,14476,013104,838Cash and cash equivalents(191,022)(226,047)(50,939)(60,279)Short-term investments(208,65
90、6)(281,215)(55,642)(74,991)Investments in debt securities(current and non-current)1(8,952)(8,565)(2,387)(2,282)Non-current cash investments-Net(cash)(123,581)(122,683)(32,955)(32,714)Total equity1,754,5131,666,147467,870444,306Total equity and net(cash)1,630,9321,543,464434,915411,592Gearing(7.6)%(7
91、.9)%(7.6)%(7.9)%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.1.As at September 30,2023,investments in debt securities(current and non-current)are comprised of SAR 1,688($450)and 7,264($1,937)which form part of other assets and receivables u
92、nder current assets,and investments in securities under non-current assets,respectively.As at December 31,2022,the investments in debt securities(current and non-current)are comprised of SAR 906($240)and SAR 7,659($2,042)which form part of other assets and receivables under current assets,and invest
93、ments in securities under non-current assets,respectively.8Saudi AramcoThird quarter and nine months interim report 2023 All amounts in millions unless otherwise statedEarnings before interest,income taxes and zakat(EBIT)Aramco defines EBIT as net income plus finance costs and income taxes and zakat
94、,less finance income.Aramco believes EBIT provides useful information regarding its financial performance to analysts and investors.EBIT for the third quarter ended September 30,2023,was SAR 233,523($62,273),compared to SAR 301,810 Third quarterNine monthsSARUSD*SARUSD*All amounts in millions unless
95、 otherwise stated20232022202320222023202220232022Net income 122,188159,11532,58342,430354,540488,78494,544130,342Finance income(6,798)(2,562)(1,813)(683)(25,086)(7,644)(6,690)(2,038)Finance costs1,9482,0935205587,2817,3721,9421,966Income taxes and zakat116,185143,16430,98338,177330,498421,10688,1331
96、12,295Earnings before interest,income taxes and zakat233,523301,81062,27380,482667,233909,618177,929242,565*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.($80,482)for the same quarter in 2022.This decrease of SAR 68,287($18,209)was primarily
97、due to the decline in crude oil prices and volumes sold,partially offset by a decrease in production royalties during the period.EBIT for the first nine months of 2023 was SAR 667,233($177,929),compared to SAR 909,618($242,565)for the same period in 2022.The decrease of SAR 242,385($64,636)mainly re
98、flects the impact of lower crude oil prices,and weakening refining and chemicals margins compared to the same period in 2022,partially offset by a reduction in production royalties during the period.9Saudi AramcoThird quarter and nine months interim report 2023Terms and abbreviationsCurrencies SAR/S
99、audi RiyalSaudi Arabian Riyal,the lawful currency of the Kingdom$/USD/Dollar U.S.dollarUnits of measurement Barrel(bbl)Barrels of crude oil,condensate or refined products boe Barrels of oil equivalent bpd Barrels per day bscf Billion standard cubic feet bscfd Billion standard cubic feet per day GWGi
100、gawatts mboed Thousand barrels of oil equivalent per day mbpd Thousand barrels per day mmbbl Million barrels mmboe Million barrels of oil equivalent mmboed Million barrels of oil equivalent per day mmbpd Million barrels per day mmBTU Million British thermal unitsmmscf Million standard cubic feet mms
101、cfd Million standard cubic feet per daymmtpa Million metric tonnes per annumper day Volumes are converted into a daily basis using a calendar year(Gregorian)scf Standard cubic feettscf Trillion standard cubic feetTechnical termsCO2Carbon dioxide.CondensateLight hydrocarbon substances produced with r
102、aw gas which condenses into liquid at normal temperatures and pressures associated with surface production equipment.HydrocarbonsCrude oil and other hydrogen and carbon compounds in liquid or gaseous state.MSC Maximum Sustainable Capacity the average maximum number of barrels per day of crude oil th
103、at can be produced for one year during any future planning period,after taking into account all planned capital expenditures and maintenance,repair and operating costs,and after being given three months to make operational adjustments.The MSC excludes AGOCs crude oil production capacity.Natural GasD
104、ry gas produced at Aramcos gas plants and sold within the Kingdom.ReliabilityTotal products volume shipped/delivered within 24 hours of the scheduled time,divided by the total products volume committed.Any delays caused by factors that are under the Companys control(e.g.terminal,pipeline,stabilizati
105、on,or production)negatively affect the score,whereas delays caused by conditions that are beyond the Companys control,such as adverse weather,are not considered.A score of less than 100 percent indicates there were issues that negatively impacted reliability.Sales GasA mixture consisting primarily o
106、f the lightest component of natural gas that meets specifications for sale within the Kingdom.10Saudi AramcoThird quarter and nine months interim report 2023GlossaryAffiliate Except with respect to financial information,the term affiliate means a person who controls another person or is controlled b
107、y that other person,or who is under common control with that person by a third person.In any of the preceding,control could be direct or indirect.With respect to financial information,the term affiliate means the Companys subsidiaries,joint arrangements and associates,each as defined by IFRS.Associa
108、teWith respect to financial information,the term Associate,as defined by IFRS,means an entity over which the Company has significant influence but not control,generally reflected by a shareholding of between 20%and 50%of the voting rights.Significant influence is the power to participate in the fina
109、ncial and operating policy decisions of the investee but is not control or joint control over those policies.AuditorPricewaterhouseCoopers Public Accountants,the independent external auditor of Aramco.BoardThe Board of Directors of the Company.CompanySaudi Arabian Oil Company(The Company).ControlExc
110、ept with respect to financial information,the term“Control”means the ability to influence the actions or decisions of another person through,whether directly or indirectly,alone or with a relative or affiliate(a)holding 30%or more of the voting rights in a company,or(b)having the right to appoint 30
111、%or more of the Board of a company;“controller”shall be construed accordingly.With respect to financial information,the term“Control”is defined by IFRS:The Company controls an entity when it is exposed to,or has rights to,variable returns from its involvement with the entity and has the ability to a
112、ffect those returns through its power over the entity.DomesticRefers to the Kingdom of Saudi Arabia.EBITEarnings(losses)before interest,income taxes and zakat.ESGEnvironmental,social,governance.General Assembly Any Ordinary General Assembly or Extraordinary General Assembly.GovernmentThe Government
113、of the Kingdom(and“Governmental”shall be interpreted accordingly).HHijri calendar.IAS International Accounting Standard(s).IFRS International Financial Reporting Standard(s)that are endorsed in the Kingdom and other standards and pronouncements endorsed by SOCPA.Joint Operation The term joint operat
114、ion,as defined by IFRS,means a type of joint arrangement whereby the parties that have joint control of the agreement have rights to the assets and obligations for the liabilities relating to the arrangement.Joint VentureThe term joint venture,as defined by IFRS,means a type of joint arrangement whe
115、reby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement.KingdomKingdom of Saudi Arabia.MENAMiddle East and North Africa.PIFPublic Investment Fund of Saudi Arabia.ROACEReturn on average capital employed.SABICSaudi Basic Industries Corporation
116、.Saudi Aramco/Aramco/GroupSaudi Arabian Oil Company,together with its consolidated subsidiaries,and where the context requires,its joint operations,joint ventures and associates.Any reference to“us”,“we”or“our”refers to Saudi Aramco/Aramco except where otherwise stated.Unless otherwise stated,the te
117、xt does not distinguish between the activities and operations of the Company and those of its subsidiaries.ShareholderAny holder of shares.SOCPA Saudi Organization for Chartered and Professional Accountants.SubsidiariesExcept with respect to financial information,the term subsidiaries mean the compa
118、nies that Aramco controls through its ability to influence the actions or decisions of another person through,whether directly or indirectly,alone or with a relative or affiliate(i)holding 30%or more of the voting rights in a company or(ii)having the right to appoint 30%or more of the Board of a com
119、pany.With respect to financial information,the term subsidiaries is defined by IFRS,meaning entities over which the Company has controls.11Saudi AramcoThird quarter and nine months interim report 2023Disclaimer This Interim Report may contain certain forward-looking statements with respect to Aramco
120、s financial position,results of operations and business and certain of Aramcos plans,intentions,expectations,assumptions,goals and beliefs regarding such items.These statements include all matters that are not historical fact and generally,but not always,may be identified by the use of words such as
121、“believes”,“expects”,“are expected to”,“anticipates”,“intends”,“estimates”,“should”,“will”,“shall”,“may”,“is likely to”,“plans”,“outlook”or similar expressions,including variations and the negatives thereof or comparable terminology.Investors and prospective investors should be aware that forward-lo
122、oking statements are not guarantees of future performance and that Aramcos actual financial position,results of operations and business and the development of the industries in which it operates may differ significantly from those made in or suggested by these forward-looking statements.In addition,
123、even if Aramcos financial position,results of operations and business and the development of the industries in which it operates are consistent with these forward-looking statements,those results or developments may not be indicative of results or developments in subsequent periods.Factors that coul
124、d cause actual results to differ materially from Aramcos expectations are contained in cautionary statements in this Interim Report and include,among other things,the following:Supply,demand and price fluctuations with respect to oil and gas,and Aramcos other products;Global economic market conditio
125、ns;Natural disasters and public health pandemics or epidemics,and weather conditions(including those associated with climate change);Competition in the industries in which Aramco operates;Climate change concerns and related impacts on the global demand for hydrocarbons and hydrocarbon-based products
126、,as well as risks related to Aramcos ESG goals and targets;Conditions affecting the transportation of products;Operational risk and hazards common in the oil and gas,refining and petrochemicals industries;The cyclical nature of the oil and gas,refining and petrochemicals industries;Terrorism and arm
127、ed conflict,political and social instability and unrest,and actual or potential armed conflicts in the MENA region and other areas;Managing Aramcos growth and risks related to its strategic growth objectives;Risks in connection with projects under development and recent and future acquisitions and j
128、oint ventures,including with respect to SABIC;Aramcos dependence on the reliability and security of its IT systems;Managing Aramcos subsidiaries,joint operations,joint ventures,associates and entities in which it holds a minority interest;Aramcos exposure to interest rate risk and foreign exchange r
129、isk;Risks related to operating in a regulated industry and changes to oil,gas,environmental or other regulations that impact the industries in which Aramco operates;Risks related to litigation,including international trade litigation,disputes or agreements;and Risks related to the Kingdom.Disclaimer
130、 Risk FactorsFor a discussion of our risk factors,please see Aramcos Annual Report 2022,available through the investor relations section of Aramcos website at undertake no obligation to update or revise any forward-looking statement,whether as a result of new information,future events or otherwise.A
131、ll subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and our risk factors in our Annual Report and statements contained elsewhere in this Interim Report
132、.Aramcos financial information herein has been extracted from Aramcos condensed consolidated interim financial report for the three-and nine-month periods ended September 30,2023,which is prepared and presented in accordance with IAS 34,that is endorsed in the Kingdom of Saudi Arabia and other stand
133、ards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants(“SOCPA”).In addition,this document includes certain“non-IFRS financial measures.”These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS.Rather,t
134、hese measures are provided as additional information to complement IFRS measures by providing further understanding of Aramcos results of operations,cash flow and financial position from managements perspective.Accordingly,they should not be considered in isolation or as a substitute for analysis of
135、 Aramcos financial information reported under IFRS.A reconciliation of non-IFRS measures is included in the Non-IFRS measures reconciliations and definitions section of this Interim Report.Independent auditors review report.13 Condensed consolidated statement of income.14 Condensed consolidated stat
136、ement of comprehensive income.15Condensed consolidated balance sheet.16Condensed consolidated statement of changes in equity.17 Condensed consolidated statement of cash flows.18 Notes to the condensed consolidated interim financial report.19Condensed consolidated interim financial reportFor the thre
137、e-month and nine-month periods ended September 30,2023(unaudited)Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated Amin H.Nasser Director,President&Chief Executive Officer Ziad T.Al Murshed Executive Vice President&Chief Fi
138、nancial Officer Bassam M.Asiri Senior Vice President&Controller 14 Condensed consolidated statement of income SAR USD*3rd quarter 3rd quarter Nine months Nine months 3rd quarter 3rd quarter Nine months Nine months Note 2023 2022 2023 2022 2023 2022 2023 2022 Revenue 10 424,095 543,712 1,244,119 1,57
139、2,783 113,092 144,990 331,765 419,409 Other income related to sales 64,840 70,223 152,967 206,422 17,290 18,726 40,791 55,046 Revenue and other income related to sales 488,935 613,935 1,397,086 1,779,205 130,382 163,716 372,556 474,455 Royalties and other taxes(55,185)(91,177)(175,521)(271,393)(14,7
140、16)(24,314)(46,806)(72,372)Purchases(121,277)(148,856)(346,710)(400,203)(32,340)(39,694)(92,456)(106,720)Producing and manufacturing(22,868)(29,219)(70,133)(69,012)(6,098)(7,792)(18,702)(18,403)Selling,administrative and general(27,800)(19,615)(57,417)(63,919)(7,413)(5,231)(15,311)(17,045)Exploratio
141、n(1,962)(1,401)(6,075)(4,550)(524)(374)(1,620)(1,214)Research and development(1,042)(939)(3,025)(2,805)(278)(251)(806)(748)Depreciation and amortization 5,6(24,355)(22,494)(69,022)(64,895)(6,494)(5,998)(18,406)(17,305)Operating costs(254,489)(313,701)(727,903)(876,777)(67,863)(83,654)(194,107)(233,8
142、07)Operating income 234,446 300,234 669,183 902,428 62,519 80,062 178,449 240,648 Share of results of joint ventures and associates(1,014)130(2,545)4,946(270)34(678)1,318 Finance and other income 6,889 4,008 25,681 9,888 1,837 1,069 6,848 2,637 Finance costs(1,948)(2,093)(7,281)(7,372)(520)(558)(1,9
143、42)(1,966)Income before income taxes and zakat 238,373 302,279 685,038 909,890 63,566 80,607 182,677 242,637 Income taxes and zakat 7(116,185)(143,164)(330,498)(421,106)(30,983)(38,177)(88,133)(112,295)Net income 122,188 159,115 354,540 488,784 32,583 42,430 94,544 130,342 Net income(loss)attributab
144、le to Shareholders equity 123,534 156,068 349,886 471,875 32,942 41,618 93,303 125,833 Non-controlling interests(1,346)3,047 4,654 16,909(359)812 1,241 4,509 122,188 159,115 354,540 488,784 32,583 42,430 94,544 130,342 Earnings per share(basic and diluted)18 0.51 0.64 1.45 1.95 0.14 0.17 0.39 0.52*T
145、his supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only,and is presented in millions of U.S.dollars.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated Amin H.Nasser Directo
146、r,President&Chief Executive Officer Ziad T.Al Murshed Executive Vice President&Chief Financial Officer Bassam M.Asiri Senior Vice President&Controller 15 Condensed consolidated statement of comprehensive income SAR USD*3rd quarter 3rd quarter Nine months Nine months 3rd quarter 3rd quarter Nine mont
147、hs Nine months Note 2023 2022 2023 2022 2023 2022 2023 2022 Net income 122,188 159,115 354,540 488,784 32,583 42,430 94,544 130,342 Other comprehensive income(loss),net of tax 8 Items that will not be reclassified to net income Remeasurement of post-employment benefits 4,956 4,774 5,166 21,318 1,321
148、 1,273 1,377 5,685 Share of post-employment benefits remeasurement from joint ventures and associates 26 180 137 256 7 48 36 68 Changes in fair value of equity investments classified as fair value through other comprehensive income(761)(131)(1,340)(205)(202)(34)(357)(54)Items that may be reclassifie
149、d subsequently to net income Cash flow hedges and other 122 268(790)1,234 33 71(210)329 Changes in fair value of debt securities classified as fair value through other comprehensive income 87(86)245(465)23(23)65(124)Share of other comprehensive(loss)income of joint ventures and associates(120)(580)6
150、10(649)(32)(155)163(173)Currency translation differences(1,261)(3,953)(2,607)(8,170)(337)(1,054)(695)(2,179)3,049 472 1,421 13,319 813 126 379 3,552 Total comprehensive income 125,237 159,587 355,961 502,103 33,396 42,556 94,923 133,894 Total comprehensive income(loss)attributable to Shareholders eq
151、uity 126,663 157,008 351,685 486,103 33,777 41,868 93,783 129,627 Non-controlling interests(1,426)2,579 4,276 16,000(381)688 1,140 4,267 125,237 159,587 355,961 502,103 33,396 42,556 94,923 133,894*This supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenienc
152、e only,and is presented in millions of U.S.dollars.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated Amin H.Nasser Director,President&Chief Executive Officer Ziad T.Al Murshed Executive Vice President&Chief Financial Office
153、r Bassam M.Asiri Senior Vice President&Controller 16 Condensed consolidated balance sheet SAR USD*September 30,December 31,September 30,December 31,Note 2023 2022 2023 2022 Assets Non-current assets Property,plant and equipment 5 1,355,276 1,303,266 361,407 347,538 Intangible assets 6 164,919 159,32
154、8 43,978 42,487 Investments in joint ventures and associates 70,660 72,196 18,843 19,252 Deferred income tax assets 18,229 18,093 4,861 4,825 Post-employment benefits 31,796 23,034 8,479 6,142 Other assets and receivables 47,727 32,418 12,727 8,645 Investments in securities 32,397 26,758 8,639 7,136
155、 1,721,004 1,635,093 458,934 436,025 Current assets Inventories 95,424 100,528 25,446 26,808 Trade receivables 183,141 164,442 48,837 43,851 Due from the Government 65,796 54,545 17,546 14,545 Other assets and receivables 35,136 31,054 9,370 8,281 Short-term investments 208,656 281,215 55,642 74,991
156、 Cash and cash equivalents 191,022 226,047 50,939 60,279 779,175 857,831 207,780 228,755 Assets classified as held for sale 17 15,344 4,092 794,519 857,831 211,872 228,755 Total assets 2,515,523 2,492,924 670,806 664,780 Equity and liabilities Shareholders equity Share capital 90,000 75,000 24,000 2
157、0,000 Additional paid-in capital 26,981 26,981 7,195 7,195 Treasury shares(1,529)(2,236)(408)(596)Retained earnings:Unappropriated 1,423,126 1,339,892 379,500 357,305 Appropriated 6,000 6,000 1,600 1,600 Other reserves 8 578 3,279 155 874 1,545,156 1,448,916 412,042 386,378 Non-controlling interests
158、 209,357 217,231 55,828 57,928 1,754,513 1,666,147 467,870 444,306 Non-current liabilities Borrowings 9 227,787 318,380 60,743 84,901 Deferred income tax liabilities 137,042 122,311 36,545 32,616 Post-employment benefits 23,968 26,923 6,391 7,179 Provisions and other liabilities 33,380 27,777 8,901
159、7,408 422,177 495,391 112,580 132,104 Current liabilities Trade and other payables 156,781 135,390 41,809 36,104 Obligations to the Government:Income taxes and zakat 7 94,823 104,978 25,286 27,995 Royalties 23,273 16,254 6,206 4,334 Borrowings 9 57,262 74,764 15,270 19,937 332,139 331,386 88,571 88,
160、370 Liabilities directly associated with assets classified as held for sale 17 6,694 1,785 338,833 331,386 90,356 88,370 Total liabilities 761,010 826,777 202,936 220,474 Total equity and liabilities 2,515,523 2,492,924 670,806 664,780*This supplementary information is converted at a fixed rate of U
161、.S.dollar 1.00=SAR 3.75 for convenience only,and is presented in millions of U.S.dollars.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated Amin H.Nasser Director,President&Chief Executive Officer Ziad T.Al Murshed Executive
162、 Vice President&Chief Financial Officer Bassam M.Asiri Senior Vice President&Controller 17 Condensed consolidated statement of changes in equity SAR USD*Shareholders equity Retained earnings Share capital Additional paid-in capital Treasury shares Unappropriated Appropriated Other reserves(Note 8)No
163、n-controlling interests Total Total Balance at January 1,2022 60,000 26,981(2,828)1,018,443 6,000 4,661 167,411 1,280,668 341,512 Net income 471,875 16,909 488,784 130,342 Other comprehensive income(loss)14,228(909)13,319 3,552 Total comprehensive income 471,875 14,228 16,000 502,103 133,894 Transfe
164、r of post-employment benefits remeasurement 19,235 (19,235)Transfer of share of post-employment benefits remeasurement from joint ventures and associates 256 (256)Treasury shares issued to employees 444(49)18 413 110 Share-based compensation (3)239 236 63 Dividends(Note 18)(210,988)(210,988)(56,263)
165、Bonus shares issued 15,000 (15,000)Sale of non-controlling equity interest in a subsidiary 58,125 58,125 15,500 Acquisition of non-controlling interests in subsidiaries (3)(227)(230)(62)Dividends to non-controlling interests and other (12,115)(12,115)(3,231)Balance at September 30,2022 75,000 26,981
166、(2,384)1,283,766 6,000(345)229,194 1,618,212 431,523 Balance at January 1,2023 75,000 26,981(2,236)1,339,892 6,000 3,279 217,231 1,666,147 444,306 Net income 349,886 4,654 354,540 94,544 Other comprehensive income(loss)1,799(378)1,421 379 Total comprehensive income 349,886 1,799 4,276 355,961 94,923
167、 Transfer of post-employment benefits remeasurement(Note 8)4,762 (4,762)Transfer of share of post-employment benefits remeasurement from joint ventures and associates(Note 8)137 (137)Treasury shares issued to employees 707(176)(31)500 133 Share-based compensation (3)430 427 114 Dividends(Note 18)(25
168、6,491)(256,491)(68,398)Bonus shares issued(Note 18)15,000 (15,000)Dividends to non-controlling interests and other 119 (12,150)(12,031)(3,208)Balance at September 30,2023 90,000 26,981(1,529)1,423,126 6,000 578 209,357 1,754,513 467,870*This supplementary information is converted at a fixed rate of
169、U.S.dollar 1.00=SAR 3.75 for convenience only,and is presented in millions of U.S.dollars.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated Amin H.Nasser Director,President&Chief Executive Officer Ziad T.Al Murshed Executiv
170、e Vice President&Chief Financial Officer Bassam M.Asiri Senior Vice President&Controller 18 Condensed consolidated statement of cash flows SAR USD*3rd quarter 3rd quarter Nine months Nine months 3rd quarter 3rd quarter Nine months Nine months Note 2023 2022 2023 2022 2023 2022 2023 2022 Income befor
171、e income taxes and zakat 238,373 302,279 685,038 909,890 63,566 80,607 182,677 242,637 Adjustments to reconcile income before income taxes and zakat to net cash provided by operating activities Depreciation and amortization 5,6 24,355 22,494 69,022 64,895 6,494 5,998 18,406 17,305 Exploration and ev
172、aluation costs written off 779 183 2,353 654 208 48 628 174 Loss on disposal of property,plant and equipment 321 476 1,398 1,894 85 127 372 505 Loss on fair value measurement of assets classified as held for sale 17 3,216 3,216 858 858 Inventory movement(609)(65)663 139(162)(17)177 38 Share of resul
173、ts of joint ventures and associates 1,014(130)2,545(4,946)270(34)678(1,318)Finance and other income(6,889)(4,008)(25,681)(9,888)(1,837)(1,069)(6,848)(2,637)Finance costs 1,948 2,093 7,281 7,372 520 558 1,942 1,966 Change in fair value of investments through profit or loss 42 157(110)428 11 42(29)114
174、 Change in joint ventures and associates inventory profit elimination 85(208)(110)(282)23(56)(29)(76)Other(1,358)1,587(1,025)1,557 (362)424(274)415 Change in working capital Inventories(15,070)8,465 1,596(33,105)(4,019)2,257 426(8,828)Trade receivables(26,326)26,286(19,419)(54,184)(7,020)7,009(5,178
175、)(14,449)Due from the Government(19,151)14,010(11,251)(31,363)(5,107)3,737(3,001)(8,363)Other assets and receivables(3,764)2,096(3,792)(2,867)(1,004)559(1,011)(765)Trade and other payables 23,649(17,329)20,398 13,667 6,307(4,622)5,440 3,644 Royalties payable 8,422(20,103)7,019 11,544 2,246(5,360)1,8
176、72 3,079 Other changes Other assets and receivables 16(c)(10,754)(280)(16,295)2,957(2,867)(75)(4,345)788 Provisions and other liabilities 326 3,552 1,136 3,126 86 947 302 834 Post-employment benefits(478)1,139(32)3,401(128)304(9)907 Settlement of income,zakat and other taxes(100,497)(140,182)(331,59
177、4)(374,192)(26,799)(37,381)(88,425)(99,784)Net cash provided by operating activities 117,634 202,512 392,356 510,697 31,369 54,003 104,629 136,186 Capital expenditures 4(41,354)(33,895)(113,390)(97,423)(11,028)(9,038)(30,237)(25,979)Acquisition of an affiliate,net of cash acquired 16(a)(9,886)(402)(
178、2,636)(107)Distributions from joint ventures and associates 450 1,092 2,778 3,047 120 292 740 813 Additional investments in joint ventures and associates(1,019)(296)(3,177)(1,396)(272)(79)(847)(372)Dividends from investments in securities 2 234 364 540 1 62 97 144 Interest received 6,563 1,782 19,36
179、1 3,060 1,750 475 5,162 816 Investments in securities-net 16(c)(7,293)(899)(8,253)(1,943)(1,944)(240)(2,200)(519)Net(purchases)maturities of short-term investments(15,033)(75,638)72,559(144,053)(4,009)(20,171)19,349(38,415)Net cash used in investing activities(57,684)(107,620)(39,644)(238,570)(15,38
180、2)(28,699)(10,572)(63,619)Dividends paid to shareholders of the Company 18(110,181)(70,329)(256,491)(210,988)(29,382)(18,754)(68,398)(56,263)Dividends paid to non-controlling interests in subsidiaries(2,596)(2,807)(10,108)(9,757)(692)(749)(2,695)(2,602)Proceeds from sale of non-controlling equity in
181、terest in a subsidiary 58,125 15,500 Acquisition of non-controlling interest in a subsidiary (49)(230)(14)(62)Proceeds from issue of treasury shares 177 145 497 408 47 39 132 109 Proceeds from borrowings 2,406 248 20,203 5,089 642 67 5,387 1,357 Repayments of borrowings(1,585)(3,263)(122,494)(123,25
182、5)(423)(870)(32,665)(32,868)Principal portion of lease payments(3,465)(3,082)(9,690)(9,045)(924)(822)(2,584)(2,412)Interest paid(2,575)(2,020)(9,654)(7,343)(687)(538)(2,574)(1,958)Net cash used in financing activities(117,819)(81,157)(387,737)(296,996)(31,419)(21,641)(103,397)(79,199)Net(decrease)in
183、crease in cash and cash equivalents(57,869)13,735(35,025)(24,869)(15,432)3,663(9,340)(6,632)Cash and cash equivalents at beginning of the period 248,891 260,975 226,047 299,579 66,371 69,593 60,279 79,888 Cash and cash equivalents at end of the period 191,022 274,710 191,022 274,710 50,939 73,256 50
184、,939 73,256*This supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only,and is presented in millions of U.S.dollars.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 19 Notes
185、 to the condensed consolidated interim financial report 1.General information The Saudi Arabian Oil Company(the“Company”),with headquarters located in Dhahran,Kingdom of Saudi Arabia(the“Kingdom”),is engaged in prospecting,exploring,drilling and extracting hydrocarbon substances(“Upstream”)and proce
186、ssing,manufacturing,refining and marketing these hydrocarbon substances(“Downstream”).The Company was formed on November 13,1988 by Royal Decree No.M/8;however,its history dates back to May 29,1933 when the Saudi Arabian Government(the“Government”)granted a concession to the Companys predecessor for
187、 the right to,among other things,explore the Kingdom for hydrocarbons.Effective January 1,2018,Council of Ministers Resolution No.180,dated 1/4/1439H(December 19,2017),converted the Company to a Saudi Joint Stock Company with new Bylaws.On December 11,2019,the Company completed its Initial Public Of
188、fering(“IPO”)and its ordinary shares were listed on the Saudi Exchange.In connection with the IPO,the Government,being the sole owner of the Companys shares at such time,sold an aggregate of 3.45 billion ordinary shares,or 1.73%of the Companys share capital.On February 13,2022,the Government transfe
189、rred 4%of the Companys issued shares to the Public Investment Fund(“PIF”),the sovereign wealth fund of the Kingdom.Subsequently,the Government announced on April 16,2023,the transfer of 4%of the Companys issued shares to Saudi Arabian Investment Company(“Sanabil Investments”),a wholly owned company
190、of PIF.The Government remains the Companys largest shareholder,retaining a 90.19%direct shareholding.The condensed consolidated interim financial report of the Company and its subsidiaries(together“Saudi Aramco”)was approved by the Board of Directors on November 6,2023.2.Basis of preparation and oth
191、er significant accounting policies The condensed consolidated interim financial report has been prepared in accordance with International Accounting Standard 34(“IAS 34”),Interim Financial Reporting,that is endorsed in the Kingdom,and other standards and pronouncements issued by the Saudi Organizati
192、on for Chartered and Professional Accountants(“SOCPA”).This condensed consolidated interim financial report is consistent with the accounting policies and methods of computation and presentation set out in Saudi Aramcos consolidated financial statements for the year ended December 31,2022,except for
193、 new and amended standards disclosed below.The results for the interim periods are unaudited and include all adjustments necessary for a fair presentation of the results for the periods presented.This condensed consolidated interim financial report should be read in conjunction with the consolidated
194、 financial statements and related notes for the year ended December 31,2022,which have been prepared in accordance with International Financial Reporting Standards(“IFRS”)that are endorsed in the Kingdom,and other standards and pronouncements issued by SOCPA.The consolidated financial statements for
195、 the year ended December 31,2022 are also in compliance with IFRS as issued by the International Accounting Standards Board(“IASB”).Translations from SAR to USD presented as supplementary information in the condensed consolidated statement of income,condensed consolidated statement of comprehensive
196、income,condensed consolidated balance sheet,condensed consolidated statement of changes in equity,and condensed consolidated statement of cash flows at September 30,2023 and December 31,2022 and for the three-month and nine-month periods ended September 30,2023 and 2022,are for convenience and were
197、calculated at the rate of USD 1.00=SAR 3.75 representing the exchange rate at the balance sheet dates.New or amended standards(i)Saudi Aramco adopted the following IASB pronouncements,as endorsed in the Kingdom,effective for annual periods beginning on or after January 1,2023:Amendment to IAS 12,Inc
198、ome Taxes In May 2023,the IASB issued an amendment to IAS 12,Income Taxes,relating to the International Tax Reform-Pillar Two Model Rules.This amendment applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation
199、 for Economic Co-operation and Development(“OECD”),including tax law that implements qualified domestic minimum top-up taxes described in those rules.The amendment requires entities to make additional disclosures in their annual financial statements regarding their current tax exposure to pillar two
200、 income taxes.Further,as required by the amendment,Saudi Aramco has applied the mandatory temporary exception to neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.Saudi Aramco Third quarter and nine months interim report 2023 All
201、amounts in millions of Saudi Riyals unless otherwise stated 20 2.Basis of preparation and other significant accounting policies continued IFRS 17,Insurance Contracts In May 2017,the IASB issued IFRS 17,Insurance Contracts,which introduces a new comprehensive accounting model for insurance contracts,
202、and sets out the principles for the recognition,measurement,presentation and disclosure for the issuers of those contracts.The new standard replaces IFRS 4,Insurance Contracts,that was issued in 2005,and allowed insurers to use a range of different accounting treatments for insurance contracts.There
203、 is no material impact on the condensed consolidated interim financial report from the adoption of IFRS 17.There are no other amendments or interpretations that are effective for annual periods beginning on or after January 1,2023 that have a material impact on the condensed consolidated interim fin
204、ancial report.(ii)Saudi Aramco has not early adopted any new accounting standards,interpretations or amendments that are issued but not yet effective.3.Fair value estimation Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction betw
205、een market participants at the measurement date.The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or,in the absence of a principal market,in the most advantageo
206、us market for the asset or liability.Management believes that the fair values of Saudi Aramcos financial assets and liabilities that are measured and recognized at amortized cost are not materially different from their carrying amounts at the end of the reporting period.The following table presents
207、Saudi Aramcos assets and liabilities measured and recognized at fair value at September 30,2023 and December 31,2022,based on the prescribed fair value measurement hierarchy on a recurring basis.Saudi Aramco did not measure any financial assets or financial liabilities at fair value on a non-recurri
208、ng basis at September 30,2023 and December 31,2022.There were no changes made to any of the valuation techniques and valuation processes applied as of December 31,2022 and changes in unobservable inputs are not expected to materially impact the fair values.Assets Level 1i Level 2ii Level 3iii Total
209、September 30,2023 Investments in securities:Equity securities at Fair Value Through Other Comprehensive Income(FVOCI)13,694 36 2,114 15,844 Debt securities at FVOCI 111 8,241 8,352 Equity securities at Fair Value Through Profit or Loss(FVPL)489 1,487 7,315 9,291 Debt securities at FVPL 135 135 Trade
210、 receivables related to contracts with provisional pricing arrangements 141,405 141,405 14,294 9,899 150,834 175,027 Other assets and receivables:Interest rate swaps 902 902 Commodity derivative contracts 3,852 3,852 Currency forward contracts 45 45 Financial assets-option rights 3,952 3,952 4,799 3
211、,952 8,751 Total assets 14,294 14,698 154,786 183,778 December 31,2022 Investments in securities:Equity securities at FVOCI 8,699 33 2,285 11,017 Debt securities at FVOCI 47 7,463 7,510 Equity securities at FVPL 318 1,562 6,201 8,081 Debt securities at FVPL 53 82 4 139 Trade receivables related to c
212、ontracts with provisional pricing arrangements 113,542 113,542 9,117 9,140 122,032 140,289 Other assets and receivables:Interest rate swaps 734 734 Commodity derivative contracts 2,987 47 3,034 Currency forward contracts 130 130 Financial assets-option rights 2,687 2,687 3,851 2,734 6,585 Total asse
213、ts 9,117 12,991 124,766 146,874 Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 21 3.Fair value estimation continued Liabilities Level 1i Level 2ii Level 3iii Total September 30,2023 Trade and other payables:Interest rate
214、 swaps 2 2 Commodity derivative contracts 5,277 13 5,290 Currency forward contracts 98 98 Provisions and other liabilities:Financial liabilities-options and forward contracts 2,839 2,839 Total liabilities 5,377 2,852 8,229 December 31,2022 Trade and other payables:Interest rate swaps 16 16 Commodity
215、 derivative contracts 228 2,358 81 2,667 Currency forward contracts 134 134 Provisions and other liabilities:Financial liabilities-options and forward contracts 2,929 2,929 Total liabilities 228 2,508 3,010 5,746 i.Quoted prices(unadjusted)in active markets for identical assets or liabilities.ii.Val
216、uation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.iii.Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.The changes in Level 3 investments in
217、securities for the nine-month period ended September 30,2023 and the year ended December 31,2022 are as follows:September 30,December 31,2023 2022 Beginning 8,490 5,268 Net additions 1,075 2,790 Net unrealized fair value(loss)gain(157)391 Realized gain 21 41 Ending 9,429 8,490 The movement in trade
218、receivables related to contracts with provisional pricing arrangements mainly relates to sales transactions,net of settlements,made during the period,resulting from contracts with customers(Note 10).Unrealized fair value movements on these trade receivables are not significant.The change in the carr
219、ying amount of commodity derivative contracts primarily relates to purchase and sales of derivative contracts,including recognition of a gain or loss that results from adjusting a derivative to fair value.Fair value movements on commodity derivative contracts are not significant.The movements in fin
220、ancial assets-option rights and financial liabilities-options and forward contracts,being put,call and forward contracts on Saudi Aramcos own equity instruments in certain subsidiaries,are mainly due to changes in the unrealized fair values of those contracts during the period.4.Operating segments S
221、audi Aramco is engaged in prospecting,exploring,drilling,extracting,processing,manufacturing,refining and marketing hydrocarbon substances within the Kingdom and has interests in refining,petrochemical,distribution,marketing and storage facilities outside the Kingdom.Saudi Aramcos operating segments
222、 are established on the basis of those components that are evaluated regularly by the President&CEO,considered to be the Chief Operating Decision Maker.The Chief Operating Decision Maker monitors the operating results of Saudi Aramcos operating segments separately for the purpose of making decisions
223、 about resource allocation and performance assessment.Segment performance is evaluated based on revenues,costs and a broad range of key performance indicators in addition to segment profitability.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals u
224、nless otherwise stated 22 4.Operating segments continued For management purposes,Saudi Aramco is organized into business units based on the main types of activities.At September 30,2023,Saudi Aramco had two reportable segments,Upstream and Downstream,with all other supporting functions aggregated in
225、to a Corporate segment.Upstream activities include crude oil,natural gas and natural gas liquids exploration,field development and production.Downstream activities consist primarily of refining and petrochemical manufacturing,supply and trading,distribution and power generation,logistics,and marketi
226、ng of crude oil and related services to international and domestic customers.Corporate activities include primarily supporting services including Human Resources,Finance and IT,not allocated to Upstream and Downstream.Transfer prices between operating segments are on an arms length basis in a manner
227、 similar to transactions with third parties.There are no differences from the consolidated financial statements for the year ended December 31,2022 in the basis of segmentation or in the basis of measurement of segment earnings before interest,income taxes and zakat,except for some limited changes i
228、n the pricing basis of certain inter-segment transactions between Upstream and Downstream.Information by segments for the three-month period ended September 30,2023 is as follows:Upstream Downstream Corporate Eliminations Consolidated External revenue 196,753 226,561 781 424,095 Other income related
229、 to sales 24,198 40,642 64,840 Inter-segment revenue 96,317 8,632 83(105,032)Earnings(losses)before interest,income taxes and zakat 227,371 19,739(3,201)(10,386)233,523 Finance income 6,798 Finance costs (1,948)Income before income taxes and zakat 238,373 Capital expenditures-cash basis 33,693 7,056
230、 605 41,354 Information by segments for the three-month period ended September 30,2022 is as follows:Upstream Downstream Corporate Eliminations Consolidated External revenue 268,626 274,628 458 543,712 Other income related to sales 26,466 43,757 70,223 Inter-segment revenue 120,930 11,007 70(132,007
231、)Earnings(losses)before interest,income taxes and zakat 293,996(4,246)(4,984)17,044 301,810 Finance income 2,562 Finance costs (2,093)Income before income taxes and zakat 302,279 Capital expenditures-cash basis 27,209 6,365 321 33,895 Information by segments for the nine-month period ended September
232、 30,2023 is as follows:Upstream Downstream Corporate Eliminations Consolidated External revenue 590,577 651,785 1,757 1,244,119 Other income related to sales 53,681 99,286 152,967 Inter-segment revenue 268,381 26,172 209(294,762)Earnings(losses)before interest,income taxes and zakat 655,105 35,525(1
233、0,261)(13,136)667,233 Finance income 25,086 Finance costs (7,281)Income before income taxes and zakat 685,038 Capital expenditures-cash basis 90,344 21,783 1,263 113,390 Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 23
234、4.Operating segments continued Information by segments for the nine-month period ended September 30,2022 is as follows:Upstream Downstream Corporate Eliminations Consolidated External revenue 797,137 774,278 1,368 1,572,783 Other income related to sales 68,443 137,979 206,422 Inter-segment revenue 3
235、62,165 33,334 213(395,712)Earnings(losses)before interest,income taxes and zakat 852,261 81,774(13,757)(10,660)909,618 Finance income 7,644 Finance costs (7,372)Income before income taxes and zakat 909,890 Capital expenditures-cash basis 76,770 19,404 1,249 97,423 5.Property,plant and equipment Land
236、 and land improvements Buildings Oil and gas properties Plant,machinery and equipment Depots,storage tanks and pipelines Fixtures,IT and office equipment Construction-in-progress Total Cost January 1,2023 55,911 91,617 641,029 932,134 95,610 20,755 262,903 2,099,959 Additions1 631 619 295 11,291 253
237、 120 114,344 127,553 Acquisition(Note 16(a)482 806 779 35 44 139 2,285 Construction completed 1,086 1,322 36,020 32,250 9,306 400(80,384)Currency translation differences(345)(230)(2,320)(368)(65)(281)(3,609)Transfers and adjustments 1,137(7)379(379)(12)80(503)695 Transfer of exploration and evaluati
238、on assets 672 672 Transfer to assets held for sale(Note 17)(349)(4,072)(21,513)(415)(545)(26,894)Retirements and sales(51)(556)(282)(4,730)(208)(470)(89)(6,386)September 30,2023 58,502 89,499 677,441 947,512 104,616 20,449 296,256 2,194,275 Accumulated depreciation January 1,2023(19,411)(42,330)(244
239、,678)(431,840)(45,802)(12,632)(796,693)Charge for the period2(1,096)(2,840)(15,789)(45,017)(2,269)(1,156)(68,167)Currency translation differences 2 160 1,257 169 48 1,636 Transfers and adjustments(59)24(14)860 6(4)813 Transfer to assets held for sale(Note 17)64 2,427 15,540 393 18,424 Retirements an
240、d sales 61 465 137 3,656 208 461 4,988 September 30,2023(20,439)(42,094)(260,344)(455,544)(47,688)(12,890)(838,999)Property,plant and equipment-net,September 30,2023 38,063 47,405 417,097 491,968 56,928 7,559 296,256 1,355,276 1.Additions include borrowing costs capitalized during the nine-month per
241、iod ended September 30,2023,amounting to SAR 5,516,which were calculated using an average annualized capitalization rate of 4.7%.2.Saudi Aramco recognized write-down of SAR 452 relating to certain downstream facilities.Additions to right-of-use assets during the three-month and nine-month periods en
242、ded September 30,2023 were SAR 2,998 and SAR 8,935,respectively.Acquisition of right-of-use assets during the three-month and nine-month periods ended September 30,2023 were nil and SAR 364,respectively.The following table presents depreciation charges and net carrying amounts of right-of-use assets
243、 by class of assets.Depreciation expense for the nine-month period ended September 30,2023 Net carrying amount at September 30,2023 Land and land improvements 134 5,132 Buildings 372 3,087 Oil and gas properties 10 Plant,machinery and equipment 8,799 46,954 Depots,storage tanks and pipelines 246 2,2
244、38 Fixtures,IT and office equipment 95 277 9,656 57,688 Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 24 6.Intangible assets Goodwill Exploration and evaluation Brands and trademarks Franchise/customer relationships Com
245、puter software Other1 Total Cost January 1,2023 100,603 17,971 22,730 19,647 5,854 4,031 170,836 Additions 5,080 53 132 5,265 Acquisition(Note 16(a)411 2,288 2,073 267 5,039 Currency translation differences(10)(54)(7)(6)(33)(110)Transfers and adjustments (67)(57)4(460)(580)Transfer of exploration an
246、d evaluation assets (672)(672)Transfer to assets held for sale(Note 17)(167)(167)Retirements and write offs (2,353)(34)(2)(2,389)September 30,2023 101,004 20,026 24,897 21,656 5,871 3,768 177,222 Accumulated amortization January 1,2023 (2,559)(3,362)(4,066)(1,521)(11,508)Charge for the period (208)(
247、166)(236)(245)(855)Currency translation differences 3 1 5 22 31 Transfers and adjustments 68(608)5 384 (151)Transfer to assets held for sale(Note 17)146 146 Retirements and write offs 34 34 September 30,2023 (2,696)(4,135)(4,258)(1,214)(12,303)Intangible assets-net,September 30,2023 101,004 20,026 2
248、2,201 17,521 1,613 2,554 164,919 1.Other intangible assets with a net book value of SAR 2,554 as at September 30,2023 comprise of processing and offtake agreements,licenses,technology,usage rights,patents and intellectual property.7.Income taxes and zakat(a)Kingdom income tax rates The Company is su
249、bject to an income tax rate of 20%on its Downstream activities and on the activities of exploration and production of non-associated natural gas,including gas condensates,as well as the collection,treatment,processing,fractionation and transportation of associated and non-associated natural gas and
250、their liquids,gas condensates and other associated elements.All other activities are subject to an income tax rate of 50%,in accordance with the Saudi Arabian Income Tax Law of 2004 and its amendments(the“Tax Law”).The 20%income tax rate applicable to the Companys Downstream activities,which came in
251、to effect on January 1,2020,is conditional on the Company separating its Downstream activities under the control of one or more separate wholly owned subsidiaries before December 31,2024,otherwise the Companys Downstream activities will be retroactively taxed at 50%.The Company expects to transfer a
252、ll its Downstream activities into a separate legal entity or entities within the period specified.Additionally,according to the Tax Law,shares held directly or indirectly in listed companies on the Saudi Exchange by taxpayers engaged in oil and hydrocarbon activities are exempt from the application
253、of corporate income tax.As a result,the Companys ownership interests in such companies are subject to zakat.The reconciliation of tax charge at the Kingdom statutory rates to consolidated tax and zakat expense is as follows:3rd quarter 3rd quarter Nine months Nine months 2023 2022 2023 2022 Income b
254、efore income taxes and zakat 238,373 302,279 685,038 909,890 Add(less):Loss(income)subject to zakat 856(5,240)(5,321)(23,194)Income subject to income tax 239,229 297,039 679,717 886,696 Income taxes at the Kingdoms statutory tax rates 114,210 145,230 330,139 429,473 Tax effect of:Loss(income)not sub
255、ject to tax at statutory rates and other 1,608(2,499)(1,034)(9,952)Income tax expense 115,818 142,731 329,105 419,521 Zakat expense 367 433 1,393 1,585 Total income tax and zakat expense 116,185 143,164 330,498 421,106 Saudi Aramco Third quarter and nine months interim report 2023 All amounts in mil
256、lions of Saudi Riyals unless otherwise stated 25 7.Income taxes and zakat continued(b)Income tax and zakat expense 3rd quarter 3rd quarter Nine months Nine months 2023 2022 2023 2022 Current income tax-Kingdom 108,100 134,841 313,911 401,084 Current income tax-Foreign 2,018 138 4,494 1,108 Deferred
257、income tax-Kingdom 6,252 7,196 11,644 12,618 Deferred income tax-Foreign(552)556(944)4,711 Zakat-Kingdom 367 433 1,393 1,585 116,185 143,164 330,498 421,106 (c)Income tax and zakat obligation to the Government 2023 2022 January 1 104,978 90,525 Provided during the period 315,304 402,669 Payments dur
258、ing the period by the Company(Note 14)(163,117)(182,064)Payments during the period by subsidiaries and joint operations(11,369)(7,759)Settlements of due from the Government(145,936)(179,569)Other settlements(4,812)(3,831)Transfer to liabilities associated with assets held for sale(225)September 30 9
259、4,823 119,971 8.Other reserves Share of other comprehensive income(loss)of joint ventures and associates Currency translation differences Investments in securities at FVOCI Post-employment benefits Share-based compensation reserve Cash flow hedges and other Foreign currency translation gains(losses)
260、Cash flow hedges and other Total January 1,2023(3,407)5,155 298 1,034 195 4 3,279 Current period change(2,607)(1,328)430(790)485 125 (3,685)Remeasurement gain1 9,075 137 9,212 Transfer to retained earnings (4,762)(31)(137)(4,930)Tax effect 233(3,909)(3,676)Less:amounts related to non-controlling int
261、erests 938 (404)6(162)378 September 30,2023(5,076)4,060 697 250 518 129 578 1.The remeasurement gain is primarily due to the net impact arising from changes in discount rates used to determine the present value of the post-employment benefit obligations and changes in the fair value of post-employme
262、nt benefit plan assets.9.Borrowings September 30,2023 December 31,2022 Non-current Current Total Non-current Current Total Conventional:Deferred consideration(Note 9(a)81,168 40,995 122,163 Debentures 81,630 14,506 96,136 89,585 7,627 97,212 Bank borrowings 22,747 3,682 26,429 20,998 2,166 23,164 Sh
263、ort-term borrowings 12,332 12,332 10,205 10,205 Revolving credit facilities 469 469 Export credit agencies 1,266 657 1,923 1,582 657 2,239 Public Investment Fund 638 365 1,003 820 365 1,185 Other financing arrangements(Note 9(b)36,094 323 36,417 23,570 408 23,978 Sharia compliant:Sukuk 22,434 11,250
264、 33,684 34,300 281 34,581 Murabaha 14,602 2,411 17,013 16,158 2,135 18,293 Saudi Industrial Development Fund 3,051 281 3,332 3,441 295 3,736 Ijarah/Procurement 3,479 13 3,492 2,688 13 2,701 Wakala 798 13 811 997 26 1,023 186,739 46,302 233,041 275,307 65,173 340,480 Lease liabilities 41,048 10,960 5
265、2,008 43,073 9,591 52,664 227,787 57,262 285,049 318,380 74,764 393,144 Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 26 9.Borrowings continued(a)Deferred consideration Deferred consideration represented the amount paya
266、ble to PIF for the SABIC acquisition in 2020.The amount was payable over several installments,in the form of promissory notes,from August 2020 to April 2028.During the nine-month period ended September 30,2023,the Company made the following repayments:(i)On March 13,2023,the Company,in agreement wit
267、h PIF,made a partial prepayment of SAR 59,040($15,744),which resulted in a gain of SAR 4,635($1,236).(ii)On April 7,2023,the Company repaid the outstanding amounts of the promissory notes due on or before April 7,2023,aggregating to SAR 41,250($11,000).(iii)On May 2,2023,the Company,in agreement wit
268、h PIF,made a final prepayment of SAR 16,691($4,451),which resulted in a gain of SAR 1,141($304).Following the above repayments,the outstanding amount of deferred consideration was fully settled.(b)Other financing arrangements On January 19,2023,the Company received SAR 15,563 in respect of the secon
269、d tranche of the financing arrangement with the Jazan Integrated Gasification and Power Company(“JIGPC”),a joint operation of Saudi Aramco.An amount of SAR 12,450 was recognized on the condensed consolidated balance sheet in this regard,being the amount due to the other shareholders of JIGPC.The fin
270、al tranche of SAR 1,968 under the financing arrangement is expected to be received by the end of 2023.10.Revenue 3rd quarter 3rd quarter Nine months Nine months 2023 2022 2023 2022 Revenue from contracts with customers 416,472 545,768 1,234,045 1,568,420 Movement between provisional and final prices
271、 4,386(3,365)1,758 416 Other revenue 3,237 1,309 8,316 3,947 424,095 543,712 1,244,119 1,572,783 Disaggregation of revenue from contracts with customers Saudi Aramcos revenue from contracts with customers according to product type and source is as follows:3rd quarter 2023 Upstream Downstream Corpora
272、te Total Crude oil 182,330 22,040 204,370 Refined and chemical products 197,460 197,460 Natural gas and NGLs 10,143 1,070 11,213 Metal products 3,429 3,429 Revenue from contracts with customers 192,473 223,999 416,472 Movement between provisional and final prices 4,216 170 4,386 Other revenue 64 2,3
273、92 781 3,237 External revenue 196,753 226,561 781 424,095 3rd quarter 2022 Upstream Downstream Corporate Total Crude oil 257,226 40,837 298,063 Refined and chemical products 224,560 224,560 Natural gas and NGLs 14,217 5,376 19,593 Metal products 3,552 3,552 Revenue from contracts with customers 271,
274、443 274,325 545,768 Movement between provisional and final prices(3,017)(348)(3,365)Other revenue 200 651 458 1,309 External revenue 268,626 274,628 458 543,712 Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 27 10.Revenu
275、e continued Nine months 2023 Upstream Downstream Corporate Total Crude oil 559,469 67,653 627,122 Refined and chemical products 564,884 564,884 Natural gas and NGLs 29,081 3,199 32,280 Metal products 9,759 9,759 Revenue from contracts with customers 588,550 645,495 1,234,045 Movement between provisi
276、onal and final prices 1,753 5 1,758 Other revenue 274 6,285 1,757 8,316 External revenue 590,577 651,785 1,757 1,244,119 Nine months 2022 Upstream Downstream Corporate Total Crude oil 750,405 88,348 838,753 Refined and chemical products 654,101 654,101 Natural gas and NGLs 45,971 17,650 63,621 Metal
277、 products 11,945 11,945 Revenue from contracts with customers 796,376 772,044 1,568,420 Movement between provisional and final prices 461(45)416 Other revenue 300 2,279 1,368 3,947 External revenue 797,137 774,278 1,368 1,572,783 11.Non-cash investing and financing activities Investing and financing
278、 activities for the three-month and nine-month periods ended September 30,2023 include additions to right-of-use assets of SAR 2,998 and SAR 8,935(September 30,2022:SAR 2,909 and SAR 7,720),respectively,asset retirement provisions of SAR 111 and SAR 297(September 30,2022:SAR 119 and SAR 281),respect
279、ively,and equity awards issued to employees of SAR 7 and SAR 210(September 30,2022:SAR 3 and SAR 63),respectively.12.Commitments Capital commitments Capital expenditures contracted for but not yet incurred were SAR 225,911 and SAR 172,639 at September 30,2023 and December 31,2022,respectively.In add
280、ition,leases contracted for but not yet commenced were SAR 25,193 and SAR 18,326 at September 30,2023 and December 31,2022,respectively.13.Contingencies Saudi Aramco has contingent assets and liabilities with respect to certain disputed matters,including claims by and against contractors and lawsuit
281、s and arbitrations involving a variety of issues.These contingencies arise in the ordinary course of business.It is not anticipated that any material adjustments will result from these contingencies.(a)Rabigh Refining and Petrochemical Company(“Petro Rabigh”)On March 20,2023,Petro Rabigh refinanced
282、the outstanding amount of equity bridge loans of SAR 9,310,which were previously guaranteed on a several and equal basis by the two founding shareholders of Petro Rabigh,the Company and Sumitomo Chemical Co.Ltd.Under the refinancing arrangement,Sumitomo Chemical Co.Ltd.guaranteed its share of the eq
283、uity bridge loans,amounting to SAR 4,655,that was fully financed by external lenders.In addition,the Company,through its wholly owned subsidiary,Aramco Overseas Company B.V.(“AOC”),provided Petro Rabigh an equity bridge loan of SAR 3,000,while the remaining amount of its share,amounting to SAR 1,655
284、,was provided by external lenders and was guaranteed by the Company.The refinanced equity bridge loans mature on December 20,2027.(b)Noor Al Shuaibah Holding Company On May 2,2023,Saudi Aramco Power Company(“SAPCO”),a wholly owned subsidiary of the Company,entered into a shareholders agreement with
285、the Water and Electricity Holding Company(“Badeel”),wholly owned by PIF,and ACWA Power Company,to invest in Noor Al Shuaibah Holding Company for the development of Al Shuaibah 1 and Al Shuaibah 2 solar photovoltaic power generating plants in Makkah province in the Kingdom(the“Projects”).The Projects
286、 will have a combined capacity of 2.66 gigawatts and commercial operations are expected to commence by 2025.The estimated total cost of the Projects is SAR 8,919 which will be funded through a mix of senior debt financing and equity bridge loans.During the third quarter of 2023,the Company guarantee
287、d SAPCOs 30%share of the equity bridge loans,amounting to approximately SAR 800,under the terms of the project financing.The equity bridge loans were fully drawn as of September 30,2023.Further,additional guarantees amounting to SAR 347 have been provided to support SAPCOs obligations related to the
288、 Projects.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 28 14.Payments to the Government by the Company 3rd quarter 3rd quarter Nine months Nine months 2023 2022 2023 2022 Income taxes(Note 7(c)46,946 50,704 163,117 182
289、,064 Royalties 49,857 109,160 152,908 273,935 Dividends 99,391 66,266 234,308 198,801 15.Related party transactions and balances(a)Transactions 3rd quarter 3rd quarter Nine months Nine months 2023 2022 2023 2022 Joint ventures:Revenue from sales 6,259 6,855 17,295 21,720 Other revenue 15 12 26 23 In
290、terest income 45 41 143 90 Purchases 6,877 5,378 19,230 22,249 Service expenses 4 4 8 8 Associates:Revenue from sales 32,156 10,882 67,785 57,765 Other revenue 34 22 124 86 Interest income 26 11 131 90 Purchases 13,882 7,215 42,840 48,394 Service expenses 30 34 79 79 Lease expenses 36 150 Government
291、,semi-Government and other entities with Government ownership or control:Revenue from sales 424 5,539 11,299 16,635 Other income related to sales 64,840 70,223 152,967 206,422 Other revenue 214 292 668 866 Purchases 3,597 3,821 11,153 9,334 Service expenses 142 135 356 304 Lease expenses 255 165 769
292、 424 (b)Balances September 30,December 31,2023 2022 Joint ventures:Other assets and receivables 5,441 5,363 Trade receivables 5,021 5,096 Interest receivable 514 371 Trade and other payables 6,191 7,060 Associates:Other assets and receivables 2,220 1,519 Trade receivables 10,826 13,410 Trade and oth
293、er payables 7,676 6,278 Borrowings 15 Government,semi-Government and other entities with Government ownership or control:Other assets and receivables 1,170 510 Trade receivables 3,713 3,874 Due from the Government 65,796 54,545 Trade and other payables 1,658 2,093 Borrowings 6,618 128,026 (c)Compens
294、ation of key management personnel Compensation policies for and composition of key management personnel remain consistent with 2022.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 29 16.Investments in affiliates and secur
295、ities(a)Valvoline Inc.s global products business On March 1,2023,AOC,a wholly owned subsidiary of the Company,acquired a 100%equity interest in Valvoline Inc.s global products business(“VGP Holdings LLC”)for a cash consideration of SAR 10,346($2,759),including customary adjustments.VGP Holdings LLC
296、is a leading worldwide independent producer and distributor of premium branded automotive,commercial and industrial lubricants,and automotive chemicals.This strategic acquisition is expected to complement Saudi Aramcos line of premium branded lubricant products,optimize its global base oils producti
297、on capabilities,and expand its own research and development activities and partnerships with original equipment manufacturers.The transaction resulted in Saudi Aramco obtaining control of VGP Holdings LLC.Saudi Aramco accounts for acquisitions of subsidiaries using the acquisition method of accounti
298、ng.This requires recognition of the assets acquired and liabilities assumed at fair value as of the acquisition date.Saudi Aramco engaged an independent valuer in order to determine the fair value of the assets and liabilities of VGP Holdings LLC as part of the purchase price allocation process.The
299、preliminary fair values of the identifiable assets and liabilities are as follows:Cash and cash equivalents 460 Trade receivables,inventories and other current assets 3,836 Property,plant and equipment(Note 5)2,285 Intangible assets(Note 6)4,628 Other non-current assets 522 Trade payables and other
300、current liabilities(1,275)Non-current liabilities(521)Total identifiable net assets at fair value 9,935 Goodwill(Note 6)411 Purchase consideration 10,346 Acquisition and transaction costs of SAR 161 were expensed as selling,administrative and general expenses in the condensed consolidated statement
301、of income for the nine-month period ended September 30,2023.Post-acquisition,VGP Holdings LLC contributed revenues of SAR 6,570 and net income of SAR 424,which are included in the condensed consolidated statement of income.If the acquisition had occurred on January 1,2023,management estimates that c
302、onsolidated revenue and net income for the nine-month period ended September 30,2023 would have been SAR 8,332 and SAR 559,respectively.(b)Huajin Aramco Petrochemical Co.,Ltd.(“HAPCO”)On March 25,2023,AOC,a wholly owned subsidiary of the Company,entered into definitive agreements with North Huajin C
303、hemical Industries Group Corporation(“North Huajin”)and Panjin Xincheng Industrial Group Co.,Ltd.(“Panjin Xincheng”)to construct the HAPCO refinery and petrochemical complex in Panjin City,Liaoning Province,China.AOC owns a 30%interest in HAPCO,while North Huajin and Panjin Xincheng own 51%and 19%,r
304、espectively.The investment in HAPCO has been accounted for as an associate.The complex,expected to be completed in 2026 with an estimated construction cost of RMB 83.7 billion(SAR 43,039),will be financed through a combination of debt and equity.The facility will combine a 300,000 barrels per day(“b
305、pd”)refinery and a petrochemical plant with annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene.Saudi Aramcos share of the equity contribution is RMB 8.4 billion(SAR 4,304),of which RMB 5.8 billion(SAR 2,998)was undrawn as at September 30,2023.(
306、c)Rongsheng Petrochemical Co.,Ltd.(“Rongsheng Petrochemical”)On July 21,2023,the Company announced the completion of the acquisition of a 10%equity interest in Rongsheng Petrochemical from Zhejiang Rongsheng Holding Group Co.,Ltd.,through its wholly owned subsidiary,AOC,for a total transaction value
307、 of RMB 24.6 billion(SAR 12,767).The acquisition of the equity interest in Rongsheng Petrochemical,a company listed on the Shenzhen Stock Exchange in China,follows the signing of definitive strategic agreements by the companies,as announced on March 27,2023.Among other assets,Rongsheng Petrochemical
308、 owns a 51%equity interest in Zhejiang Petroleum&Chemical Co.,Ltd.(“ZPC”),which in turn owns and operates the largest integrated refining and chemicals complex in China with a capacity to process 800,000 bpd of crude oil and to produce 4.2 million metric tons of ethylene per year.Through this strate
309、gic arrangement,Saudi Aramco would significantly expand its downstream presence in China,including supplying 480,000 bpd of crude oil to ZPC,under a long-term sales agreement.Upon completion,Saudi Aramco recognized an equity investment at fair value through other comprehensive income of SAR 6,399 wi
310、thin investments in securities,and a non-current other asset of SAR 5,932,relating to a payment made for the long-term sales agreement,which is amortized over the term of the agreement.In addition,a loss of SAR 436 was recognized in selling,administrative and general expenses in the condensed consol
311、idated statement of income,representing fair value changes to the market price up to the completion date.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riyals unless otherwise stated 30 16.Investments in affiliates and securities continued(d)Esmax Dis
312、tribuscin SpA(“Esmax”)On September 15,2023,AOC,a wholly owned subsidiary of the Company,agreed to purchase a 100%equity stake in Esmax Distribuscin SpA(“Esmax”)from Southern Cross Group,a Latin America-focused private equity company.Esmax is one of the leading diversified downstream fuels and lubric
313、ants retailers in Chile,and its operations include retail fuel stations,airport operations,fuel distribution terminals and a lubricant blending plant.The transaction represents Saudi Aramcos first downstream retail investment in South America and would enable it to secure outlets for its refined pro
314、ducts,create a platform to launch the Aramco brand in South America while strengthening its downstream value chain,and unlock new market opportunities for its Valvoline-branded lubricants.The transaction is subject to customary closing conditions and regulatory approvals,and is expected to close dur
315、ing the first quarter of 2024.(e)MidOcean Energy(“MidOcean”)On September 27,2023,AOC,a wholly owned subsidiary of the Company,entered into definitive agreements to acquire a strategic minority stake in MidOcean Energy(“MidOcean”)for a purchase consideration of SAR 1,875($500),with an option to incre
316、ase its shareholding and associated rights in the future.MidOcean is a Liquefied Natural Gas(“LNG”)company,formed and managed by EIG Global Energy Partners with the objective of building a portfolio of high-quality,long term LNG interests,and is currently in the process of acquiring interests in fou
317、r Australian LNG projects,with a growth strategy to create a diversified global LNG business.The strategic partnership with MidOcean marks Saudi Aramcos first international investment in LNG.The transaction is expected to close during the first quarter of 2024,subject to customary closing conditions
318、 and regulatory approvals.17.Sale of equity interest in a subsidiary Saudi Iron and Steel Company(“Hadeed”)On September 3,2023,SABIC,a subsidiary of Saudi Aramco,announced the signing of an agreement to sell its 100%shareholding in the Saudi Iron and Steel Company(“Hadeed”)to PIF.This transaction wi
319、ll enable SABIC to optimize its portfolio and focus on its core business.The completion of the transaction is subject to customary conditions and regulatory approvals,and is expected to occur during the first quarter of 2024.Following the signing of the agreement,Hadeeds assets and liabilities were
320、classified as held for sale,and were presented separately on the condensed consolidated balance sheet.At the Saudi Aramco level,a loss on fair value measurement of SAR 3,216 was recognized within selling,administrative and general expenses in the condensed consolidated statement of income to reduce
321、the carrying amount of the assets to their fair value less costs to sell.The major classes of Hadeeds assets classified as held for sale as at September 30,2023,comprise property,plant and equipment and intangible assets of SAR 5,275,inventories of SAR 4,291,trade receivables of SAR 3,002,and other
322、assets of SAR 2,776.The liabilities directly associated with assets classified as held for sale comprise trade payables of SAR 908,post-employment benefit obligations of SAR 2,969,and other liabilities of SAR 2,817.18.Dividends Dividends declared and paid on ordinary shares are as follows:SAR per sh
323、are Nine months Nine months Nine months Nine months 2023 2022 2023 2022 Quarter:March1 73,150 70,331 0.33 0.35 June2 73,160 70,328 0.30 0.32 September2,3 110,181 70,329 0.45 0.32 Total dividends declared and paid 256,491 210,988 1.08 0.99 Dividends declared on November 6,2023 and October 31,20222,4
324、110,183 70,330 0.45 0.32 1.Dividend of SAR 73,150 paid in 2023 relates to 2022 results.Dividend of SAR 70,331 paid in 2022 relates to 2021 results.2.Dividends per share of SAR 0.30,SAR 0.45 and SAR 0.45,declared on May 8,2023,August 6,2023,and November 6,2023,respectively,reflect the effect of the i
325、ssuance of the bonus shares approved on May 8,2023,as described below.3.Dividend of SAR 110,181(SAR 0.45 per share)represents a base dividend of SAR 73,164(SAR 0.30 per share)and a performance-linked dividend of SAR 37,017(SAR 0.15 per share)that were declared on August 6,2023(August 12,2022:base di
326、vidend of SAR 70,329(SAR 0.32 per share).4.Dividend of SAR 110,183(SAR 0.45 per share)represents a base dividend of SAR 73,165(SAR 0.30 per share)and a performance-linked dividend of SAR 37,018(SAR 0.15 per share)that were declared on November 6,2023(October 31,2022:base dividend of SAR 70,330(SAR 0
327、.32 per share).These dividends are not reflected in this condensed consolidated interim financial report and will be deducted from unappropriated retained earnings in the year ending December 31,2023.Saudi Aramco Third quarter and nine months interim report 2023 All amounts in millions of Saudi Riya
328、ls unless otherwise stated 31 18.Dividends continued On May 8,2023,after obtaining necessary approvals from the competent authorities,the Extraordinary General Assembly(“EGA”)approved the increase of the Companys share capital by SAR 15,000 and the commensurate increase of the number of the Companys
329、 issued ordinary shares by 22 billion without par value.Such increase was effected through capitalization of the Companys retained earnings.Each shareholder was granted one(1)bonus share for every ten(10)shares owned.The Companys share capital after the increase is SAR 90,000,divided into 242 billio
330、n fully paid ordinary shares with equal voting rights without par value.Accordingly,earnings per share for the three-month and nine-month periods ended September 30,2023 and 2022 have been calculated by retrospectively adjusting the weighted average number of outstanding shares to reflect the effect
331、 of the issuance of the above bonus shares.32Saudi AramcoThird quarter and nine months interim report 2023About Aramco Aramco,headquartered in the city of Dhahran,is one of the worlds largest integrated energy and chemicals companies;its Upstream operations are primarily based in the Kingdom of Saudi Arabia while the Downstream business is Investor overview: media:Domestic media:Investor relations: