1、unlockingIntroductionSafetyAccountabilityCitizenshipExcellenceIntegrityOur VisionAramcos vision is to be the worlds preeminent integrated energy and chemicals company,operating in a safe,sustainable and reliable manner.Our ValuesBy living our values and prioritizing sound business practices,we consi

2、stently achieve high levels of performance and efficiency delivering value not only for our Company,but for our customers,partners,and the communities in which we operate.Our MissionAramco strives to provide reliable,affordable,and more sustainable energy to communities around the world,and to deliv

3、er value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals,aiming to capture value across the energy value chain and profitably growing its portfolio.For more information on our values,visit: are Aramco,one of t

4、he worlds largest integrated energy and chemicals companiesSAUDI ARAMCO|ANNUAL REPORT 2023017.Consolidated financial statementsIndependent auditors report.154Consolidated statement of income.162Consolidated statement ofcomprehensive income.163Consolidated balance sheet.164Consolidated statement of c

5、hanges in equity.165Consolidated statement of cash flows.166Notes to the consolidatedfinancial statements.1671.Aramco overview and strategyHistory.06 Chairmans message.08President and CEOs message.102023 highlights.12Business model.14Aramcos operations.16Business overview.18Market overview.19Strateg

6、y.202.Results and performanceKey 2023 metrics.28CFOs message .30Financial performance.32Upstream.40Downstream.48Corporate.603.SustainabilityAramcos approach.64Four areas of focus.66 Climate change and the energy transition.66 Safe operations and people development.68 Minimizing environmental impact.

7、69 Growing societal value.704.RiskRisk management.74Risk factors.765.Corporate governanceBoard of Directors.92Senior Executives .98Board structure.102Audit Committee report.107Sustainability,Risk and HSE Committee report.109Nomination Committee statement.110 Compensation Committee statement.111Compe

8、nsation and other interests.112Governance,risk and compliance.1166.Additional financial and legal informationAdditional financial information.122Reserves information.129Additional legal information.130Forecasts and forward-looking statements.145Terms and abbreviations.146Glossary.148ContentsThe info

9、rmation contained in Sections 1 6 of this Annual Report constitutes the Board of Directors report.Online Report See our online report: Annual Report covers financial and operational aspects of Aramco and is issued in both Arabic and English.The print version is identical to its PDF counterpart,which

10、 is available at .The Arabic version prevails in the event of any discrepancy.The images in this document are representative of the services provided by Aramco.Investing in growth Innovating for sustainabilitySAUDI ARAMCO|ANNUAL REPORT 202302King Salman bin Abdulaziz Al-SaudThe Custodian of the Two

11、Holy MosquesSAUDI ARAMCO|ANNUAL REPORT 202303His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-SaudCrown Prince and Prime MinisterHistory.06Chairmans message.08President and CEOs message.102023 highlights.12Business model.14Aramcos operations.16Business overview.18Market overview.19Stra

12、tegy.201.Aramco overview and strategySAUDI ARAMCO|ANNUAL REPORT 202304Supporting the energy transitionMarjan Gas Oil Separation Plant 2,Marjan field,Arabian Gulf Aramco supports a practical,stable,and inclusive energy transition,and has one of the lowest average upstream carbon intensities for crude

13、 oil production among major producers.The Company believes all sources of energy are needed for the foreseeable future,and is delivering on the largest capital spending program in its history.The investment includes the Marjan,Berri,and Zuluf crude oil increment projects.05SAUDI ARAMCO|ANNUAL REPORT

14、 2023 Legendary Saudi Bedouin Khamis bin Rimthan tries out an alidade,Saudi Arabia(photo taken 1955)In 2023,Aramco celebrated 90 years of creating value.Saudi tracker and intuitive geographer Khamis bin Rimthan understood the desert like the back of his hand,and began working for California Arabian

15、Standard Oil Company(now Aramco)in 1934.In 1938,he helped chief geologist Max Steineke discover oil in Saudi Arabia,and the Rimthan oil field was named after him in 1974.SAUDI ARAMCO|ANNUAL REPORT 202306History1933-1944The birth of Arabian oil1933Crude oil Concession agreement signed with Standard O

16、il of California which created the California Arabian Standard Oil Company(CASOC)to manage the Concession.1938Oil discovered at Dammam Well No.7.1939Oil exports began.1944CASOC renamed the Arabian American Oil Company.1945-1965Expansion1948Standard Oil Company of New Jersey,later Exxon,purchased 30%

17、of Arabian American Oil Company,and Socony-Vacuum Oil Company,later Mobil,purchased 10%to help provide market outlets.1949Oil production hit 500 mbpd.1952Headquarters moved from New York City to Dhahran.1958Oil production exceeded 1 mmbpd.1965Oil production exceeded 2 mmbpd.1966-1988 Making a name f

18、or itself1971Oil production averaged 4.5 mmbpd.1973The Saudi Government acquired an initial 25%participating interest in the Concession,which increased to 60%the following year.1975Decision made to build the Master Gas System,enabling one of the worlds largest gas markets,transforming the national e

19、nergy mix toward natural gas and building the cornerstone for the economys industrialization.1976Became the worlds leading oil producer in terms of volume produced in a single year.1980The Saudi Government increased its participation interest in the crude oil Concession rights,production,and facilit

20、ies to 100%.1988Saudi Arabian Oil Company officially established.We hold 90 years of global energy leadership07SAUDI ARAMCO|ANNUAL REPORT 20231.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 5.CORPORATE GOVERNANCE6.ADDITIONAL FINANCIAL AND LEGAL INFORMATION7.CONSOLIDATE

21、D FINANCIAL STATEMENTS07SAUDI ARAMCO|ANNUAL REPORT 20231989-2017A global company1989First international downstream joint venture established in the U.S.1991First Asian downstream joint venture established in South Korea.1993Aramco assumed the assets and operations of Saudi Arabian Marketing and Refi

22、ning Company,a Government-owned in-Kingdom refining and international product marketing organization.2009Petro Rabigh,Aramcos first petrochemical plant,began production.2011Sadara Chemical Company formed.2014SATORP and YASREF refineries came online.2017Aramco acquired full ownership of Motiva.2018-2

23、023Transformation and energy security2018Commercial production of unconventional resources commenced in north Arabia.2019$12.0 billion of Senior Unsecured Notes issued and listed on the London Stock Exchange.Aramco became a public company with shares listed on the Saudi Exchange.2020Highest single-d

24、ay crude oil production of 12.1 mmbpd.Historic acquisition of a 70%stake in SABIC transformed Aramco into a major global petrochemicals producer.202149%of Aramco Oil Pipelines Company sold to a consortium of local and international investors.Announced ambition to achieve net-zero Scope 1 and Scope 2

25、 greenhouse gas emissions across wholly-owned operated assets by 2050.2022 49%of Aramco Gas Pipelines Company sold to a consortium of investors.Established a$1.5 billion Sustainability Fund.Successfully completed three landmark transactions with Polish refiner and fuel retailer PKN ORLEN,supporting

26、expansion of Aramcos global downstream presence.Highest single-day natural gas production record of 11.3 bscfd.2023Acquired a 10%interest in Rongsheng Petrochemical to align with Aramcos goal to enhance its Downstream business in high-growth geographies.Acquired Valvoline Inc.s global products busin

27、ess to complement Aramcos premium-branded lubricant products.First production of unconventional tight gas at South Ghawar.Introduced performance-linked dividends in addition to the base dividend,providing additional upside for investors.SAUDI ARAMCO|ANNUAL REPORT 202308Dear Shareholders,2023 served

28、as a historic milestone for your Company.It was 90 years earlier that the Kingdom signed the Concession agreement,which in turn led to the discovery of commercial quantities of oil and which in time would lead to the creation of Aramco.Over the subsequent decades,Aramco has become one of the worlds

29、largest integrated energy and chemicals companies,reliably serving our customers while continually creating value for our shareholders.I am pleased to report that for 2023,your Companys long-running value creation story continued unabated.Despite uncertainty in the global economy,we recorded strong

30、earnings and cash flows for the year due to our strategically integrated Upstream and Downstream businesses.Our net income for 2023 was SAR 454.8 billion($121.3 billion).Delivering value todayOur aim is to deliver a sustainable and progressive dividend across business cycles,providing both downside

31、resilience and the opportunity for investors to share in the upside of our strong performance.During 2023,we took a significant step in this regard with the Board approved performance-linked dividends to deliver a balanced mix of growth and yield to our shareholders.Based on our robust financial per

32、formance in 2023 and in line with our desire to maximize shareholder returns,the Board of Directors has declared a fourth quarter base dividend of SAR 76.1 billion($20.3 billion),an increase of 4.0%compared to the previous quarter,and a performance-linked dividend distribution of SAR 40.4 billion($1

33、0.8 billion).Total dividends paid in 2023,including base and performance-linked dividends,reached SAR 366.7 billion($97.8 billion),up 30.4%compared to 2022 and underscoring our aim to maximize shareholder returns while investing in the future of our business.In addition to enhanced dividend distribu

34、tions,one bonus share for every 10 shares held was also issued during the year to all eligible shareholders in relation to Aramcos 2022 record results.As well as delivering value to our shareholders,the men and women of Aramco also pride themselves on providing value to the Companys customers with h

35、ighly reliable energy supplies.In 2023,our reliability was 99.8%,maintaining our position as one of the worlds most reliable crude oil suppliers.Positioning Aramco for tomorrow In recent years,Aramcos investment in Upstream has been both significant and counter cyclical as we believe global energy d

36、emand will increase over the mid-to long-term.Our view remains unchanged.At the same time,we recognize that as the world undergoes an energy transition,the future will favor those energy producers who provide the most sustainable solutions.Chairmans messageSAUDI ARAMCO|ANNUAL REPORT 2023091.ARAMCO O

37、VERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL STATEMENTSAgainst this backdrop,we believe Aramco has a number of competitive advantages,including but not limited to producing crude oil that

38、has one of the lowest upstream carbon intensities of any major oil producer.We also have the advantage of being a single operator with long-term control of a high concentration of high-quality upstream assets.In addition to having exclusive access to the Kingdoms considerable oil and gas reserves,we

39、 also have low lifting costs and relatively low depletion rates.While these advantages collectively translate into a significant position of strength for Aramco,we are also actively working to further future-proof your Company.In 2023,we scaled up our capital program with investments in both brownfi

40、eld and greenfield developments.In Upstream,we continued to progress our crude oil increment projects that will allow us to maintain our MSC at 12.0 mmbpd,and we advanced And we also continue to support the Archie Initiative,a tool which promotes increased transparency within the global energy suppl

41、y chain.During the year,we also continued to back the development of new industries in the Kingdom through our iktva and Namaat programs,as well as our active participation in the Kingdoms Shareek program.These initiatives serve two purposes as they help strengthen the resilience of Aramcos supply c

42、hain going forward,while also contributing to Saudi Arabias economic growth and diversification.We also made the decision to more than double our venture capital funding from SAR 11.3 billion($3.0 billion)to SAR 26.3 billion($7.0 billion)through Aramco Ventures.Expressing our gratitudeAramcos succes

43、s in 2023 would not have been possible without the support of many.In particular,the visionary leadership of The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud,and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud,Crown Prince and Prime Minister of the Kingdom

44、of Saudi Arabia.We also thank the Kingdoms Ministry of Energy for their continued support as well as our shareholders for placing your trust in Aramco.On behalf of the Board of Directors,I want to also convey our collective appreciation to the talented men and women of Aramco for their continued com

45、mitment in providing reliable energy to our customers,while also creating value for our shareholders.H.E.Yasir O.Al-RumayyanChairman of the Board of Directors Our intention is to play a key role in the energy transition through the deployment of technologiesand tools that can contribute to global em

46、ission reduction efforts.our goal to increase gas production by more than 60%by 2030 compared to 2021 levels.In Downstream,our focus remains on enhancing our business in key high-growth geographies,increasing the placement of the Kingdoms crude oil in wholly-owned or affiliated refineries and conver

47、ting more of our hydrocarbon molecules into materials.During the year we began construction at two major projects in Asia and one in Saudi Arabia to expand our liquids-to-chemicals production,and we acquired an interest in one of the largest integrated refining and petrochemical complexes in China.T

48、hese activities should enable us to increase placement of our upstream crude oil in affiliated refineries.We also advanced our strategy to strengthen our downstream value chain internationally with agreements to acquire interests in the South America and Pakistan retail markets.Our intention is to s

49、upply our customers with oil and gas,and also play a key role in the energy transition through the deployment of technologies and tools that can contribute to global emission reduction efforts.As such,we are working on multiple fronts,including carbon capture and storage,synthetic fuels,blue hydroge

50、n technologies,renewables,and offsets.Subject to closing conditions and regulatory approvals,we will make our first international investment in liquefied natural gas,an area where we expect strong demand-led growth as the world continues on its energy transition journey.SAUDI ARAMCO|ANNUAL REPORT 20

51、2310President and CEOs messageDear Shareholders,Aramco continued to deliver both value and growth in 2023.Throughout the year we provided the reliable energy supplies that our global customer base has come to expect from Aramco.We also recorded another year of strong financial performance,which enab

52、led us to deliver increased value to our shareholders through the distribution of increased base dividends and the introduction of performance-linked dividends.And we continued to deliver on our strategy by growing our existing core business as well as expanding into new geographies and working to d

53、evelop new businesses such as carbon capture and storage,synthetic fuels,blue hydrogen technologies,renewables,and offsets.Expanding our businessWhile global oil demand was reaching an all-time high in 2023,at Aramco we were continuing our efforts to ensure we can help supply the conventional energy

54、 that we believe the world will need for decades to come.Our crude oil development and increment projects remain on track,with the first phase of the Dammam development project expected to come onstream this year,followed by the Marjan and Berri increment projects in 2025 and the Zuluf field in 2026

55、.Together,these projects will help us maintain our MSC at 12.0 mmbpd as directed by the Government,and they support our unique ability to rapidly respond to changes in the market.During the year,we also made significant progress in our efforts to expand our gas production by more than 60%of the 2021

56、 levels by 2030.This included bringing onstream our Hawiyah Gas Plant expansion and producing the first unconventional tight gas from South Ghawar.Meanwhile,work is progressing at the Jafurah unconventional gas project,which is the largest liquid-rich shale gas development in the Middle East.Our pri

57、ority is to meet rising domestic gas demand in the Kingdom while adding associated liquids for potential export.In the third quarter of 2023,we announced our first international investment in liquefied natural gas(LNG).Subject to closing conditions and regulatory approvals,our acquisition of a stake

58、 in MidOcean Energy will give us a strategic position in a commodity that we anticipate will experience strong demand-led growth as the global energy transition plays out.We view LNG as a complementary asset to our portfolio given gas is a vital fuel and feedstock for various industries.We also expa

59、nded our Downstream business in 2023 both inside and outside the Kingdom.Engineering,procurement,and construction contracts were awarded for a significant expansion at our jointly owned SATORP refinery in Jubail.When complete,this new petrochemical complex will include one of the largest mixed-load

60、steam crackers in the region.SAUDI ARAMCO|ANNUAL REPORT 2023111.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL STATEMENTSIn Asia,we broke ground for two large integrated refinery and

61、 petrochemical complexes,one through a joint venture in China and the other with our affiliate S-OIL in South Korea,and we acquired a 10%stake in a Chinese petrochemical company.All of these projects support our long-term goal of directing up to four million barrels per day by 2030 into liquids-to-c

62、hemicals.Through SABIC,our subsidiary,we also made a final investment decision to participate in a world-scale petrochemical complex located in China.As well,we completed our acquisition of Valvolines global products business and our first downstream retail investment in South America with our purch

63、ase of Chilean retailer Esmax.We also signed definitive agreements to acquire a 40%equity stake in Gas&Oil Pakistan,our first entry into the Pakistani fuels retail market.This inaugural shipment and subsequent follow-up shipments to Asia represent another milestone in the development of a global mar

64、ket for blue ammonia and blue hydrogen.During the year we progressed toward our goal of investing in 12 gigawatts of solar and wind energy capacity by 2030.Together with our consortium partners,we entered into a shareholders agreement for the two Al Shuaibah photovoltaic solar projects,which are exp

65、ected to commence commercial operation in 2025 with a combined capacity of 2.66 gigawatts.We were also the leading bidder in the worlds largest-ever carbon-credit auction,which was held by the Regional Voluntary Carbon Market Company in Kenya in the second quarter of the year.During the COP28 climat

66、e summit,Aramco also helped support a charter signed by more than 50 oil and gas producers to reduce emissions from their respective operations.Another vital component of Aramcos strategy is further localization of our supply chain.We made advancements on this front as our joint venture nonmetallic

67、thermoplastic pipe production facility at King Salman Energy Park commenced operations.Under our Namaat program and in line with our iktva objectives,we also signed a shareholders agreement with Baosteel and the Public Investment Fund to establish an integrated steel plate manufacturing complex in t

68、he Kingdom.Looking ahead with confidenceWe believe Aramco is well positioned to actively participate in addressing the worlds growing need for affordable and reliable energy.This belief is not solely based on the quality of our assets and the scale of our ambitions,it is also based on the capabiliti

69、es of our employees.Indeed,the determination of the men and women of Aramco is why we believe we will continue to deliver.Amin H.NasserPresident and Chief Executive Officer We believe Aramco is well positioned to actively participate in addressing the worlds growing need for affordable and reliable

70、energy.Pursuing our net-zero ambitionIn addition to making multiple investments across the hydrocarbon value chain,we continue to take steps that support our 2050 net-zero ambition.This includes working on ways to further lower emissions from our operations through technological innovation and addin

71、g lower-carbon energy to our own portfolio.On the technology side,we believe synthetic gasoline could play a key role in powering the existing global vehicle fleet.As such,we were particularly pleased with the results of tests by global automaker Stellantis on Aramco-provided prototype eFuels,which

72、were found to be compatible with 24 existing internal combustion engine families in Europe.To further determine the viability of such fuels,we are working with partners to build two demonstration plants:one in-Kingdom to produce synthetic gasoline for light-duty passenger vehicles,and the other in S

73、pain for synthetic diesel and jet fuel for automobiles and aircraft.In 2023,our Yanbu Refinery became the fourth Aramco facility to be added to the World Economic Forum Global Lighthouse Network in recognition of its deployment of cutting-edge technologies to deliver a range of operational and envir

74、onmental benefits.While further decarbonizing our operations remains a priority,we are also supporting our customers efforts to decarbonize.Work continues with our partners on construction of a large carbon capture and storage hub at Jubail.The facility is on track to begin storing up to nine millio

75、n tons of CO2 per year by 2027.Together with our affiliate SABIC Agri-Nutrients,we made the worlds first shipment of accredited blue ammonia during the year.Yanbu Refinery Saudi Arabia SAUDI ARAMCO|ANNUAL REPORT 202312Reflecting on another year of success and achievements in 20232023 highlightsQ1Q2A

76、cquired Valvoline Inc.s global products business Aramco completed its acquisition of Valvoline Inc.s global products business for approximately SAR 10.34 billion($2.76 billion),including customary adjustments.$7.0 billion petrochemical steam crackerAramco and its affiliate,S-OIL,commenced constructi

77、on at the SAR 26.3 billion($7.0 billion)Shaheen project in South Korea to develop one of the worlds largest refinery-integrated petrochemical steam crackers.Amiral EPC contracts awardedAramco awarded engineering,procurement,and construction contracts for the SAR 41.3 billion($11.0 billion)new petroc

78、hemical complex to be built by SATORP,Aramcos joint venture with TotalEnergies.Integrated refinery and petrochemical complexConstruction commenced at the SAR 44.4 billion($11.8 billion)integrated refinery and petrochemical complex being developed by HAPCO,a joint venture between Aramco,North Huajin,

79、and Panjin Xincheng.Performance-linked dividends Aramco introduced performance-linked dividends to support its aim to deliver a balanced mix of growth and yield to shareholders.Largest voluntary carbon auction Aramco participated as a lead bidder in the largest-ever voluntary carbon credit auction,h

80、eld by the Regional Voluntary Carbon Market Company(RVCMC)in Nairobi,Kenya.Hawiyah Unayzah Gas Reservoir StorageHawiyah Unayzah Gas Reservoir Storage,the first underground natural gas storage in the Kingdom,achieved its maximum injection target of 1.5 bscfd.Three blue ammonia shipmentsAramco deliver

81、ed three shipments of accredited blue ammonia through its affiliates ATC and SABIC Agri-Nutrients.Solar projects partnershipAramco entered into a shareholders agreement with PIF and ACWA Power Company for the development of the Al Shuaibah 1 and Al Shuaibah 2 photovoltaic solar projects which are ex

82、pected to have a combined capacity of 2.66 GW and an estimated cost of SAR 8.9 billion($2.37 billion).1.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 5.CORPORATE GOVERNANCE6.ADDITIONAL FINANCIAL AND LEGAL INFORMATION7.CONSOLIDATED FINANCIAL STATEMENTSSAUDI ARAMCO|ANNUA

83、L REPORT 202313Q3Q4International LNG investment Aramco announced its first international investment in LNG by signing definitive agreements to acquire a strategic minority stake in MidOcean Energy for SAR 1.88 billion($0.5 billion).First unconventional gas production Aramco successfully produced its

84、 first unconventional tight gas from its South Ghawar operational area.Novel nonmetallic factory begins operations Novel Non-Metallic Solutions(Novel),a joint venture between Aramco and Baker Hughes to develop and commercialize a broad range of nonmetallic products,commenced operations in Saudi Arab

85、ia.Hadeed divestment SABIC agreed to the sale of its 100%shareholding in the Saudi Iron and Steel Company(Hadeed)to PIF.Rongsheng Petrochemical deal completedAramco completed its strategic acquisition of a 10%interest in Rongsheng Petrochemical with a right to supply 480 mbpd or 60%of the crude oil

86、for a total transaction value of SAR 12.8 billion($3.4 billion).South America retail investment Aramco agreed to purchase a 100%equity stake in the Chilean retailer Esmax,representing Aramcos first downstream retail investment in South America.The transaction was completed in March 2024.Hawiyah Gas

87、Plant expansionThe Hawiyah Gas Plant expansion was successfully commissioned and brought onstream,increasing the plants raw gas processing capacity by 800 mmscfd including approximately 750 mmscfd of natural gas capacity.Gas discoveries Aramco discovered two natural gas fields in the Empty Quarter.F

88、irst entry into the Pakistani fuels retail marketAramco signed definitive agreements to acquire a 40%equity stake in Gas&Oil Pakistan Limited.Global Lighthouse Network statusThe Yanbu Refinery becomes the fourth Aramco facility to receive WEF Global Lighthouse Network status.Gas compression projects

89、 onstreamNine plants were placed onstream completing the gas compression projects at the Haradh and Hawiyah fields.INTEGRATED UPSTREAM&DOWNSTREAM OPERATIONSMARKETING&DISTRIBUTIONMARKETING&DISTRIBUTIONINTEGRATED UPSTREAM&DOWNSTREAM OPERATIONSSAUDI ARAMCO|ANNUAL REPORT 202314Business modelInputsRelati

90、onshipsFinancialHumanOperationsStakeholders Customers Suppliers Partners Governments1.Hydrocarbon reserves of Saudi Arabian Oil Company(the Company)as atDecember 31,2023,under the Concession agreement.2.Capital expenditures do not include external investments.3.For definition of net cash and average

91、 capital employed,refer to“Non-IFRS measures reconciliations and definitions”.4.Refer to Section 3:Sustainability for further information.5.Total liquids is comprised of crude oil,NGL,and condensate.6.Excludes SABIC Agri-Nutrients and Metals(Hadeed)businesses.7.Applies to Saudi Arabian Oil Company(t

92、he Company).8.Includes income taxes,royalties,and dividends.*Non-IFRS measure:refer to“Non-IFRS measures reconciliations anddefinitions”for further information.Capturing value acrossthe hydrocarbon chainIntegrated refining and petrochemical operations Major integrated refiner and petrochemical produ

93、cer with a global network of reliable assets in key regional markets and hubs.Kingdom-wide infrastructure networkKingdom-wide distribution network includes pipelines,bulk plants,air refueling sites,and terminals that deliver crude oil,NGL,natural gas,and refined products.Total hydrocarbon reserves1(

94、billion boe)251.2Domestic and foreign subsidiaries,joint arrangements,and associates400+Capital expenditures2(billion)SAR 158$42Company employees473,311 Net cash3(billion)SAR 103$27Average capital employed3 (billion)SAR 2,043$545Maximum Sustainable Capacity(mmbpd)12.0 Total hydrocarbon production(mm

95、boed)12.8 Net refining capacity(mmbpd)4.1 Total liquids production5(mmbpd)10.7 Net chemicals production capacity6(million tons per year)59.6Countries of operations50+Low cost,lower-carbon intensity crude oil productionLow-cost upstream production with a lower upstream carbon intensity than crude oil

96、 produced by other major producers,and operational flexibility to rapidly increase crude oil production.Upstream production is monetized through a high-quality external customer base and captive downstream system.High-quality gas reservesExtensive,high-quality gas reserves and exclusive access to th

97、e Kingdoms large and growing domestic marketplace.New productsDevelopment of products like blue ammonia support Aramcos efforts to de-risk its businesses and its customers interest in mitigating GHG emissions.INTEGRATED UPSTREAM&DOWNSTREAM OPERATIONSMARKETING&DISTRIBUTIONMARKETING&DISTRIBUTIONINTEGR

98、ATED UPSTREAM&DOWNSTREAM OPERATIONSINTEGRATED UPSTREAM&DOWNSTREAM OPERATIONSMARKETING&DISTRIBUTIONSAUDI ARAMCO|ANNUAL REPORT 2023151.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL ST

99、ATEMENTSSAUDI ARAMCO|ANNUAL REPORT 202315Outcomes and impactsRelationshipsFinancialHumanOperationsProducts produced Crude oil Gas NGL Condensate Refined products Chemicals Base oils and lubricants Electricity Blue ammonia NonmetallicsReliability7(%)99.8Upstream carbon intensity4(kg of CO2e/boe)10.7

100、Power supplied to the national grid(gigawatts)1.1 Scope 1 emissions4(mmtCO2e)54.4 In-Kingdom Total Value Add(iktva)4(%)65.0 Payments to the Government8(billion)SAR 747$199Net income(billion)SAR 455$121Dividends paid(billion)SAR 367$98Free cash flow*(billion)SAR 380$101Return on average capital emplo

101、yed(ROACE)*(%)22.5Lost time injuries/illnesses rate4(per 200,000 work hours)0.018 Total recordable case rate4(per 200,000 work hours)0.042Tier 1 process safety events415 Fatalities43Freshwater consumption4(million cubic meters)89.90 Scope 2 emissions4(mmtCO2e)18.2 High-growth marketsWorld-class part

102、ners and customer base provide access to high-growth markets and material demand centers.Integrated trading businessIntegrated trading business enables optimization of product supplies to maximize returns.New solutions Robust technology program aims to develop synthetic fuels,nonmetallics,and crude-

103、to-chemicals.Growing domestic marketExclusive access to the Kingdoms large and growing gas market.DubaAbu SafahKaranRas TanuraSaihatDammamKhobarBerriSABIC headquarters ManifaArabiyahHasbahWasitMarjanZulufSafaniyahTanajibQa fAbqaiqKhursaniyahFadhiliJubailJuaymahAramco headquaters,DhahranAin DarSeedSh

104、edgumUthmaniyahHawiyahHaradhNuayyimSulayyilRiyadhHawtahTabukJawfTuraifMidyanMedinaYanbuThuwalAbhaJazanQasimKhuraisAl-HasaShaybahNajranRabighJiddahBrazilColombiaArgentinaEcuadorCountries of operations as at December 31,2023 Subsidiary offices*Terminals and distribution hubs Refining,petrochemical and

105、 manufacturing facilities Crude oil and natural gas production facilities Aramco retail fuels network Technology and innovation centers*Subsidiaries are separate legal entities from the Company.CanadaUnited States of AmericaBermudaThe BahamasMexicoCuraaoSaudi ArabiaGlobal operationsAramcos operation

106、sSAUDI ARAMCO|ANNUAL REPORT 202316United KingdomItalyKenyaLuxembourgSwedenGermanyAustriaFinlandJapanVietnamThailandSouth KoreaPakistanEstoniaDenmarkSwitzerlandGuernseyNetherlandsBelgiumFranceCzech RepublicSouth AfricaPolandHungaryBahrainOmanSaudi ArabiaUnited Arab EmiratesIndonesiaSingaporeMalaysiaL

107、iberiaMauritaniaSpainTurkeyMoroccoGreeceEgyptJordanTunisiaRussiaIndiaChinaAustraliaThe Independent State of SamoaNew ZealandSerbiaSAUDI ARAMCO|ANNUAL REPORT 2023171.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFOR

108、MATION7.CONSOLIDATEDFINANCIAL STATEMENTSSAUDI ARAMCO|ANNUAL REPORT 202318OverviewAramco is one of the worlds largest integrated energy and chemicals companies.Its operating segments are Upstream and Downstream,which are supported by corporate activities.Integrated operationsUpstreamThe Upstream segm

109、ents activities consist of exploring for,developing,and producing crude oil,condensate,natural gas,and NGL.Aramcos principal fields are located in close proximity to each other within the central region and Eastern Provinces of the Kingdom.The crude oil,condensate,natural gas,and NGL produced by the

110、 Upstream segment travel through Aramcos pipelines to multiple facilities for processing into refined and petrochemical products,or to domestic customers or export terminals.For more information,see Section 2:Results and performance Upstream.DownstreamThe Downstream segments activities consist prima

111、rily of refining and petrochemicals,base oils and lubricants,retail,distribution,supply and trading,and power generation.These support the Upstream and Downstream businesses by enabling optimization of crude oil sales and product placement through Aramcos significant infrastructure network of pipeli

112、nes and terminals,and to access shipping and logistics resources.Aramcos downstream investments diversify its revenue and integrate its oil and gas operations to optimize value across the hydrocarbon chain,supporting crude oil and gas demand and facilitating the placement of its crude oil.Aramco als

113、o has an integrated petrochemicals business within its Downstream segment that produces basic chemicals,such as aromatics,olefins,and polyolefins,as well as more complex products such as polyols,isocyanates,and synthetic rubber.For more information,see Section 2:Results and performance Downstream.Co

114、rporateAramcos Upstream and Downstream segments,as well as the overall business,are supported by corporate activities.These include technical services essential to the success of Aramcos core business,as well as human resources,finance,legal,corporate affairs,and IT.The corporate activities are also

115、 supported by the integrated Strategy and Corporate Development organization,which is mandated to maximize value creation by efficiently optimizing Aramcos asset portfolio and seek growth opportunities in line with corporate strategies.For more information,see Section 2:Results and performance Corpo

116、rate.Aramcos corporate activities are underpinned by its commitment to good governance and leadership,which includes sustainability practices(Section 3:Sustainability),risk management(Section 4:Risk),and corporate governance(Section 5:Corporate governance).Business overviewSAUDI ARAMCO|ANNUAL REPORT

117、 2023191.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL STATEMENTSMarket overviewGlobalIn 2023,central banks around the world continued with their policy of increasing interest rates

118、 to suppress the significant inflation that persisted from the economic recovery that took place in 2021 and 2022.This led to a slower rate of growth in the global economy,with GDP rising by an estimated 2.7%1 in 2023,compared to 3.1%1 in the previous year.It is anticipated that the impact of previo

119、us interest rate increases will continue to weaken global GDP growth into 2024,with performance expected to reach a level of 2.6%2.In 2023,global oil demand is projected to have risen by 1.9 mmbpd to 102.3 mmbpd3,while the global oil supply is estimated to have averaged 103.0 mmbpd3.This surplus in

120、global supply has resulted in Brent crude prices stabilizing in the low$80 range.The average price for ICE Brent crude in 2023 was$82.2 per barrel4.Global oil demand and supply3,6(mmbpd)Oil demand Oil supply202320222023.0102.3100.4101.298.396.592.295.0101.6101.5Kingdom energy demand growt

121、h (%,year-on-year)202320222021202020196.0(3.3)1.70.11.220232022202120202019(6.4)(3.1)6.32.63.12.7Global GDP growth1,6(%,year-on-year)DomesticAfter experiencing robust economic expansion of 8.7%5 in 2022,the Kingdoms GDP declined by an estimated 0.9%5 in 2023.This modest decline is attributed to redu

122、ctions in oil production,which have led the oil sector to shrink by an estimated 9.2%5.However,a healthy 4.6%5 growth in non-oil activities coupled with an estimated 2.1%5 rise in government activities mitigated the effect of the oil sector decline on overall GDP growth in 2023.In 2023,the demand fo

123、r energy within the Kingdom is estimated to have increased by 1.2%.This rise in domestic energy consumption was primarily fueled by the transportation sector,which saw an estimated growth of 5.9%.This sectors growth was supported by a robust private economic sector,strong activity in construction,an

124、d the ongoing rebound of international air travel.1.Oxford Economics.2.Bloomberg.3.S&P Global Crude Oil Markets Outlook.4.Market View,Intercontinental Exchange(ICE).5.General Authority for Statistics,Kingdom of Saudi Arabia.6.Comparative figures have been adjusted to reflect actual data,where applic

125、able.SAUDI ARAMCO|ANNUAL REPORT 202320StrategyAramcos strategy is driven by its belief that reliable and affordable energy supplies,including oil and gas,will be required to meet the worlds growing energy demand,and that new lower-carbon energy supplies will gradually complement conventional sources

126、.Aramco continues to work to achieve further reductions in greenhouse gas emissions from its oil and Positioning Aramco for the futuregas operations.Aramco also invests in technologies and solutions supporting the global energy and materials transition towards a lower-carbon emissions future.The wor

127、lds demand for affordable,reliable,and more sustainable energy will continue to grow,and Aramco believes it can best be met by a broad mix of energy solutions.To achieve its vision,Aramco focuses on four strategic themes across its businesses:Lower-carbon initiativesDownstream integrationLocalizatio

128、n and the promotion of national championsAs the principal engine of value generation,Aramco intends to maintain its position as the worlds largest crude oil company by production volume and one of the lowest-cost producers.The Companys vast reserves base,spare capacity,and unique operational flexibi

129、lity allow it to effectively respond to changes in demand.Aramco aims to lower the net carbon emissions of its operations and support the global energy transition through development of a New Energies business that includes renewable power generation and lower-carbon products and solutions across th

130、e energy,chemicals,and materials sectors.Aramco has a dedicated system of domestic and international wholly-owned and affiliated refineries that are critical to monetizing its upstream production.Through continued strategic integration,the Company captures additional value across the hydrocarbon cha

131、in.Aramco facilitates the development of a diverse,more sustainable,and globally competitive in-Kingdom energy ecosystem to underpin the Companys competitiveness and support the Kingdoms economic development.For more information see page 22 For more information see page 24 For more information see p

132、age 23 For more information see page 24Upstream preeminenceOur strategic themesWithin this context,Aramcos vision is to be the worlds preeminent integrated energy and chemicals company,operating in a safe,sustainable and reliable manner.Aramco strives to provide reliable,affordable and more sustaina

133、ble energy to communities around the world,and to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals,aiming to capture value across the energy value chain and profitably growing its portfolio.SAUDI

134、ARAMCO|ANNUAL REPORT 2023211.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL STATEMENTSAramcos strategy requires a number of enablers to be successful,including:Portfolio optimization

135、Aramco seeks to unlock value,enhance its capital structure,and reallocate capital to higher growth and return investments.Aramco has a comprehensive and disciplined internal approval process for capital expenditures,new projects,and debt issuance.For more information see page 25Aramco seeks to deliv

136、er value across four dimensions:ProfitabilityBy reinforcing its competitive positions across its upstream and downstream activities.SustainabilityAs a core element of Aramcos operational philosophy.GrowthBoth in its traditional oil and gas activities and new businesses.ResilienceBoth operational and

137、 financial,enabling the Company to declare dividends on a regular basis with a view to building long-term shareholder value.This includes providing sustainable dividend growth through crude oil price cycles and maintaining a high investment-grade credit rating.How we deliver valueOur key enablersPeo

138、pleAramco recognizes the need to prepare its workforce of the future to ensure its capabilities match its strategic requirements.This includes advancing technical and professional skills,developing commercial and leadership competencies,supporting the progress of localization,and focusing on diversi

139、ty and inclusion.TechnologyAramcos technology program aims to develop new solutions for its Upstream and Downstream businesses,help diversify its product portfolio,grow its business sustainably,and achieve its net-zero ambition.The program also aims to enable Aramco to grow its business competitivel

140、y and sustainably in new areas such as new energies,advanced materials,and digital solutions.SAUDI ARAMCO|ANNUAL REPORT 202322Strategy continuedFour strategic themesUpstream preeminenceOilAramco intends to maintain its position as the worlds largest crude oil company by production volume.Its reserve

141、s,operational capabilities,and spare capacity allow it to increase production in response to demand.Aramco expects global demand for crude oil will continue to increase for many years to come.Aramco believes that there is a need for industry-wide investment to meet this demand,and that new oil disco

142、veries and developments will be needed to offset the natural decline in production from currently producing fields.The Company intends to continue to invest in crude oil exploration and production through oil price cycles in order to meet this expected global demand growth,and believes that its low

143、lifting costs,low capital intensity and lower upstream carbon intensity uniquely position it to benefit from these investments and the continued pressure on the oil and gas industry to reduce the environmental impact of the industrys operations.The Company seeks to preserve its position as one of th

144、e worlds lowest average upstream carbon intensive crude oil producers.Aramcos low per barrel gas flaring rates,low depletion rate operational model,and a focus on reducing the quantity of produced water contribute to its lower average upstream carbon intensity production.The Company is also pursuing

145、 a wide range of initiatives to reduce its upstream carbon intensity by at least 15%by 2035 compared to a 2018 baseline.Through reliable and lower carbon intensity production,Aramco aims to support energy access and security through the energy transition.The Company balances production between matur

146、ing areas and newer production sources,tapping into new reservoirs when required to optimize the depletion rate of its fields and maintain crude oil production.Aramcos low-cost position is a result of the unique nature of the Kingdoms geological formations,favorable onshore and shallow water offshor

147、e environments in which its reservoirs are located,synergies from Aramcos use of its large infrastructure and logistics networks,its low depletion rate operational model,and its scaled application of technology.Aramco seeks to maintain its position as one of the worlds most reliable crude oil suppli

148、ers.The Company utilizes term agreements for selling crude oil to major consumers globally,providing supply predictability to customers by standardizing price and delivery terms to major regional demand centers.Aramco continues to invest in its sophisticated and extensive crude oil distribution and

149、dispatch system to maintain its supply reliability.The Government determines the Kingdoms maximum level of crude oil production in the exercise of its sovereign prerogative and requires Aramco to maintain an MSC in accordance with the Hydrocarbons Law.The Government has directed Aramco to maintain c

150、rude oil MSC at 12.0 mmbpd.The spare capacity afforded by maintaining an MSC provides operational flexibility to increase its production.While Aramco has a robust field maintenance philosophy that emphasizes the reliability of its upstream operations,the MSC provides an alternative supply option in

151、the event of unplanned production outages.GasDomestically,Aramco plans to further expand its gas business,including the development of its unconventional gas resources,increase its gas production by more than 60%by 2030 compared to its 2021 production levels,subject to domestic demand,and invest in

152、additional infrastructure to meet the large and growing domestic demand for lower-cost energy and to reduce liquids-burning in power generation.Domestic gas demand growth is driven by power generation,water desalination,petrochemical production,and other industrial consumption in the Kingdom.An impo

153、rtant additional benefit of Aramcos gas production is the significant NGL and condensate yields,which supplement crude oil production and provide feedstock to the refining and petrochemical industries.Internationally,Aramco anticipates strong demand-led growth for LNG as the world continues on its e

154、nergy transition journey,with gas being a vital fuel and feedstock in various industries,and critical to meeting the worlds need for secure,accessible,and more sustainable energy.As a result,Aramco plans to develop an integrated global LNG business,and is pursuing corresponding direct investment and

155、 joint venture opportunities.Aramco plans to increase its gas production by more than 60%by 2030 compared to 2021 production levels,subject to domestic demand.Strategy in action+60%20212030SAUDI ARAMCO|ANNUAL REPORT 2023231.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK

156、5.CORPORATE GOVERNANCE6.ADDITIONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL STATEMENTSDownstream integrationAramco intends to continue the strategic integration of its Upstream and Downstream businesses to facilitate the placement of the Companys crude oil in larger offtake volumes thro

157、ugh a dedicated system of domestic and international wholly-owned and affiliated refineries and petrochemical complexes,allowing it to capture additional value across the hydrocarbon chain,expand its sources of earnings,and provide resilience to oil price and demand volatility.Aramcos 70%equity inte

158、rest in SABIC supports the significant expansion of its downstream activities,particularly in its chemicals business,and provides additional opportunities to supply mixed feedstock of crude oil,refinery products and gas to manufacture petrochemical products.Changing patterns of demand,including grow

159、th in chemicals demand and the long-term risk of decline in fuels demand,are driving the Companys strategy to favor investments in facilities with high liquids-to-chemicals conversion rates.Aramco aims to increase its liquids-to-chemicals throughput to four million barrels per day by 2030.Geographic

160、ally,Aramco intends to enhance both its domestic and global Downstream businesses in key high-growth geographies such as China,India,and Southeast Asia,which are integral to its existing business and future expansion strategy,as well as in other attractive markets.Aramco also intends to maintain its

161、 presence in key large countries,such as the United States,and in countries that rely on imported crude oil,such as Japan and South Korea.Aramco continues to expand global recognition of its brands.One aspect of this strategy is to introduce its brands to existing domestic and international marketin

162、g businesses,including at retail service stations,and further develop its petrochemicals,base oil and lubricants brands.As new marketing activities are added to its business portfolio,Aramco intends to use its own brands to build recognition of its position in the global energy sector.Aramcos dedica

163、ted system of domestic and international refineries provide secure demand for upstream crude production.Upstream crude oil production utilized by Aramcos downstream operationsStrategy in action202244%202347%202143%202039%201938%UPSTREAMDOWNSTREAM55.8%57.5%59.0%63.0%65.0%200222023SAUDI ARA

164、MCO|ANNUAL REPORT 202324Strategy continuedLower-carbon initiativesAramcos strategy for lower carbon intensity energy,which seeks to address climate-related risks and opportunities,aims to de-risk its businesses and maintain competitiveness and differentiation in carbon-constrained scenarios and,at t

165、he same time,to build a material and profitable new business area for the longer term.The strategy has two main aspects.The first is to lower the net carbon emissions of the Companys operations over time with the ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across wholly

166、-owned operated assets by 2050.The second is to develop and invest in renewables power generation and lower-carbon products and solutions across the energy,chemicals,and materials industries.Lowering the Companys own net carbon emissions requires managing,reducing,and balancing carbon emissions acro

167、ss its operations through a number of measures,including efficiency gains,renewable power investment,carbon capture,utilization,and storage,and multiple offset initiatives.By developing and investing in renewable power generation and lower-carbon products and solutions,Aramco aims to both support it

168、s efforts to decarbonize its own operations,while building a material and profitable new business area for the longer term.Through investments in lower-carbon hydrogen and ammonia,lower-carbon fuels,and gas,Aramco seeks to support emissions reductions in hard-to-decarbonize sectors such as heavy-dut

169、y transport and industrial applications,and develop products to complement renewables in the domestic energy mix.These initiatives are expected to help the Company participate in the growing market for lower-carbon products and solutions.Aramco is also pursuing carbon capture and storage as a servic

170、e offering to third parties,and is seeking investments in renewables that align with its other lower-carbon initiatives.To support this strategy,the Company has established a New Energies organization to group together its low-carbon businesses,focused on renewable power generation,lower-carbon hydr

171、ogen,and carbon capture and storage(CCS).The Company has ambitions to capture and store up to 11 million tons of CO2 annually from Aramco facilities,plus additional CO2 from other industrial sources,by 2035,and invest in up to 12 gigawatts of solar PV and wind projects by 2030.Aramco aims to grow it

172、s business sustainably by leveraging technology and innovation to lower its climate impact.The Company intends to maintain its position amongst the leaders in upstream carbon intensity,with one of the lowest carbon emissions per unit of hydrocarbons produced.Localization and national champions In ad

173、dition to Aramcos core businesses,the Company seeks to foster new businesses that will increase the long-term reliability and competitiveness of the Companys ecosystem,as well as contributing to the Kingdoms economic development.This is key to ensuring Aramcos long-term cost and productivity leaders

174、hip,sustainability,and resilience.The objectives are two-fold:to localize the Companys supply chain,and promote national champions.Aramco aims to strengthen its supply chain through its localization efforts and utilizes the Kingdoms Shareek program,which provides a framework to incentivize in-Kingdo

175、m investments.As part of this strategy,Aramco seeks to increase the use of in-Kingdom suppliers of goods and services to 70.0%through its in-Kingdom Total Value Add(iktva)program.Through its Namaat industrial investment program,Aramco intends to drive continued growth and development of a resilient

176、and sustainable domestic supply chain to strengthen and expand the in-Kingdom private sector.The Companys Taleed program seeks to accelerate the growth of small-and medium-enterprises across multiple sectors in the sustainability,digital,manufacturing,industrial,and social innovation domains.Strateg

177、y in actionStrategy in actionAramco is helping to build a world class local supply chain through its iktva program.Percentage of total procurement expenditures locally sourced11.Applies to Saudi Arabian Oil Company(the Company).Aramco has ambitions to capture and store up to of CO2 annually from Ara

178、mco facilities,plus additional CO2 from other industrial sources,by 2035,and invest in up to 12 gigawatts of solar PV and wind projects by 2030.11 million tonsSAUDI ARAMCO|ANNUAL REPORT 2023251.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK5.CORPORATE GOVERNANCE6.ADDITI

179、ONALFINANCIAL AND LEGAL INFORMATION7.CONSOLIDATEDFINANCIAL STATEMENTSOur key enablersPeopleAramco recognizes the need to prepare its workforce of the future and seeks to ensure its capabilities match its strategic requirements by:Advancing technical and professional skills,developing commercial and

180、leadership competencies,and supporting the progress of localization;and,Focusing on diversity and inclusion.TechnologyAramcos technology program aims to develop new solutions for its Upstream and Downstream businesses,help diversify its product portfolio,and grow its business sustainably and achieve

181、 its net-zero ambition.The program also aims to enable Aramco to grow its business competitively and sustainably in new areas such as new energies,advanced materials,and digital solutions.Aramco focuses its technology initiatives in upstream,downstream,and sustainability,and recognizes the importanc

182、e of embedding technology in its strategy and business culture.Aramco has increased the venture capital(VC)funding available to Aramco Ventures by SAR 15.0 billion($4.0 billion),making it one of the top corporate venture capital funds in the world and more than doubling the total funding available t

183、o its VC programs to SAR 28.1 billion($7.5 billion),including Waed Ventures.Half of this new funding will be invested in disruptive technologies outside the energy sector,and half will be earmarked for late-stage,larger-ticket ventures in the sustainability and digital domains.Aramco intends to fina

184、nce game-changing innovations across a variety of industries and to pave the way for collaborations with innovative companies to develop new technologies that create long-term diversification opportunities.Examples of the new solutions that Aramco believes will positively impact its business sustain

185、ability,and which are being actively pursued,include:Directly converting liquids to chemicals;Producing hydrogen from hydrocarbons while capturing and storing associated emissions;Expanding nonmetallic applications;Accelerating large-scale deployment of carbon capture,utilization,and storage;Enablin

186、g sustainable transport through more efficient engines and lower-carbon fuels;and,Accelerating technology-based offsetting solutions,such as direct air capture.Portfolio optimizationThrough portfolio optimization,Aramco seeks to unlock value,enhance its capital structure and reallocate capital to hi

187、gher growth and higher return investments.Aramco has a comprehensive and disciplined internal approval process for capital expenditures,new projects,and debt issuance.The Company analyzes future projects based on strategic,operational,commercial,and financial targets.Aramcos unique reserves and reso

188、urce base,operational flexibility,field management practices,and strong cash flow generation serve as a foundation for its low gearing and flexibility to allocate capital.SAUDI ARAMCO|ANNUAL REPORT 202326Key 2023 metrics .28CFOs message.30Financial performance.32Upstream.40Downstream.48Corporate.602

189、.Results and performanceMaintaining supplier reliabilityOil Supply Planning and Scheduling,Dhahran,Saudi Arabia Aramcos 24-hour command center in its Dhahran headquarters uses leading technology to track and control all of its production.Electronic screens across the centers walls consolidate thousa

190、nds of real-time remote data points.From the giant electronic viewing platform,Aramco keeps a finger on the pulse of delivery to its local and international customers.27SAUDI ARAMCO|ANNUAL REPORT 2023 Offshore installations Arabian Gulf SAUDI ARAMCO|ANNUAL REPORT 202328Key 2023 metrics1.Capital expe

191、nditures do not include external investments.2.Earnings per share have been adjusted to reflect the effect of the bonus shares issuance.*Non-IFRS measures:refer to“Non-IFRS measures reconciliations and definitions”for further details.Financial highlightsFree cash flow*(billion)SAR 380$101 2022:$149D

192、ividends paid(billion)SAR 367$98 2022:$75Gearing*(%)(6.3)2022:(7.9)Capital expenditures1(billion)SAR 158$42 2022:$38Average realized crude oil price($/barrel)83.62022:100.2Net cash provided by operating activities(billion)SAR 538$143 2022:$186Dividends paid per shareSAR 1.55$0.41 2022:$0.35Earnings

193、per share(basic and diluted)SAR 1.87$0.50 2022:$0.662Net income (billion)SAR 455$121 2022:$161EBIT*(billion)SAR 865$2312022:$307ROACE*(%)22.5 2022:31.6SAUDI ARAMCO|ANNUAL REPORT 2023291.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FI

194、NANCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTSOperational highlightsSAUDI ARAMCO|ANNUAL REPORT 2023293.Total liquids is comprised of crude oil,NGL,and condensate.4.Excludes SABIC Agri-Nutrients and Metals(Hadeed)businesses.5.Applies to Saudi Arabian Oil Company(the Company).6.Refer

195、 to Section 3:Sustainability for further information.MSC (mmbpd)12.02022:12.0 Net refining capacity(mmbpd)4.12022:4.1Upstream carbon intensity6(kg of CO2e/boe)10.72022:10.3Total hydrocarbon production(mmboed)12.82022:13.6 Net chemicals production capacity4(million tons per year)59.62022:56.3Flaring

196、intensity6(scf/boe)5.642022:4.60 Total liquids production3(mmbpd)10.72022:11.5 Reliability5(%)99.8 2022:99.9Total recordable case rate6(per 200,000 work hours)0.0422022:0.050 SAUDI ARAMCO|ANNUAL REPORT 202330Dear Shareholders,In 2023,Aramco delivered robust financial results and profitability despit

197、e ongoing inflationary pressures and global economic uncertainty.Following our remarkable performance in 2022,we are very proud to have delivered our second-highest published annual profits.For the year ended December 31,2023,Aramco delivered net income of SAR 454.8 billion($121.3 billion)and free c

198、ash flow of SAR 379.5 billion($101.2 billion).We also generated strong capital returns with ROACE of 22.5%.Meanwhile,our gearing ratio of(6.3)%remains strong at the end of 2023.These results alongside maintaining a strong balance sheet as well as prudent cash and debt management enabled us to enhanc

199、e our dividend distributions in 2023.In line with our commitment to deliver value to shareholders,the Board has declared a fourth quarter base dividend of SAR 76.1 billion($20.3 billion),an increase of 4.0%compared to the previous quarter,and a performance-linked dividend distribution of SAR 40.4 bi

200、llion($10.8 billion).Both dividends will be paid in the first quarter of 2024.Advancing our growth strategyIn 2023,we continued to demonstrate our financial flexibility as we scaled up the ongoing implementation of the largest capital program in our Companys history.Our capital expenditures in 2023

201、were SAR 158.3 billion($42.2 billion),representing an increase of 12.1%from the previous year.We expect our capital expenditures to continue to rise until the middle of the decade as we deliver our crude oil increment projects to maintain our MSC at 12.0 mmbpd as directed by the Government,and conti

202、nue to make long-term investments across the hydrocarbon chain to capture value from anticipated demand growth.As our capital program progresses,we have advanced our efforts to maintain a high investment-grade credit rating and optimize our capital structure,which remain fundamental to our financial

203、 strategy.As well,to further deleverage our balance sheet,the Company made two prepayments and a scheduled payment in 2023 to fully settle the deferred consideration related to our SABIC acquisition.These payments resulted in savings of SAR 10.5 billion($2.8 billion)for Aramco.In support of Aramcos

204、growth ambitions and advancement of our liquids-to-chemicals strategy,we completed the acquisitions of Valvoline Inc.s global products business and a 10%interest in Rongsheng Petrochemical in China.The former complements Aramcos line of premium-branded lubricant products,while the latter aligns with

205、 our goal to enhance our Downstream business in high-growth geographies.Alongside these investments,our acquisition of SABIC in 2020 continues to support our downstream growth and deliver value.We are targeting approximately SAR 11.3 billion to SAR 15.0 billion($3.0 billion to 4.0 billion)in annual

206、recurring synergies by 2025.CFOs messageSAUDI ARAMCO|ANNUAL REPORT 2023311.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FINANCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTSWe also announced our intention to enter the gl

207、obal liquefied natural gas(LNG)market for the first time through the signing of definitive agreements to acquire a strategic minority stake in MidOcean Energy.We believe LNG is positioned for structural,long-term growth and this investment would provide us an opportunity to capitalize on rising LNG

208、demand.Additionally,we completed our purchase of a 100%equity stake in Esmax,a leading diversified downstream fuels and lubricants retailers in Chile.This represents our first downstream retail investment in South America and provides new market opportunities,including fuel placement from Motiva and

209、 an expanded market for our Valvoline-branded lubricants.We also signed definitive agreements to acquire a 40%equity stake in Gas&Oil Pakistan,one of the largest retail and storage companies in Pakistan,marking our first entry into the countrys fuels retail market.performance-linked dividends totali

210、ng SAR 74.0 billion($19.8 billion)in 2023.As a result,the total dividends paid during the year were SAR 366.7 billion($97.8 billion),which is 30.4%higher than the dividends paid to shareholders in 2022.Looking forward to the full-year results of 2024 and onward,our intention is for any performance-l

211、inked dividends to be in the amount of 50-70%of the Groups annual free cash flow.This will be net of the base dividend and other amounts including external investments,to be determined and announced with the full-year results of each year and distributed over the subsequent four quarters.The Board o

212、f Directors recommendation to once again issue bonus shares was approved at the Companys Extraordinary General Assembly meeting in May.As a result,SAR 15.0 billion($4.0 billion)of retained earnings were capitalized to support the distribution of one bonus share for every 10 shares held to eligible s

213、hareholders.The Companys share capital increased by a corresponding amount to SAR 90.0 billion ($24.0 billion).Investing for the futureIn 2023 we made significant progress on delivering our growth strategy by investing in our portfolio while maintaining a strong balance sheet.We aim to continue to p

214、rovide stable energy supplies to our customers as well as consistent and long-term value creation for our shareholders.As ever,we will take a disciplined approach as we invest in unique opportunities that will underpin long-term cash flow generation and sustainable growth.Ziad T.Al MurshedExecutive

215、Vice President&Chief Financial OfficerSAR366.7bn Total dividends paid in 2023($97.8 billion)We continued to demonstrate our financial flexibility as we scaled up the ongoing implementation of the largest capital program in our Companys history.In 2023 we made progress in our efforts to build industr

216、y leadership positions in new energies,including blue ammonia and renewables.During the year we successfully delivered three shipments of blue ammonia to customers in Asia,and we entered into a shareholders agreement to develop two photovoltaic solar projects at Al Shuaibah.These actions demonstrate

217、 our desire to support an orderly global energy transition and grow our business sustainably through technology and innovation that could reduce climate impacts.Maximizing shareholder valueOur focus on maximizing shareholder returns through a balanced mix of growth and yield remains unchanged.And ou

218、r corresponding approach to dividends is based on three main factors.First,we aim to deliver a sustainable and progressive base dividend,which provides downside resilience when necessary.Second,we aim to share the upside with our shareholders,which we expect to do through our newly introduced perfor

219、mance-linked dividends.Finally,we intend to continue to heavily reinvest in our business through unique growth opportunities.The positive impact of our dividend distribution strategy was on full display in 2023.Our total base dividends paid in 2023 of SAR 292.7 billion ($78.0 billion)were 4.0%higher

220、 than the dividends paid in 2022.In addition,we also paid out SAUDI ARAMCO|ANNUAL REPORT 202332Crude oil is also a major component of the cost of production of refined products and chemicals that use hydrocarbons as a feedstock.However,because prices for refined products and chemicals may not timely

221、 adjust to reflect movements in crude oil prices,such movements could,in the short-term,positively or negatively impact margins for downstream products that use crude oil as a feedstock.The prices for refined products and chemicals are also impacted by changes in supply and demand and economic cycle

222、s.Ongoing economic uncertainty in 2023 resulted in lower prices for hydrocarbons and lower refining and chemicals margins,compared to the same period in 2022.The Government regulates the oil and gas industry and sets the Kingdoms maximum level of crude oil production in the exercise of its sovereign

223、 prerogative.Accordingly,the Government may in its sole discretion increase or decrease the Kingdoms maximum hydrocarbon production levels at any time based on its strategic energy security goals or for any other reason.Therefore,Aramcos results of operations and cash flows may depend in part on the

224、se sovereign decisions with respect to production levels.The financial information of Aramco set forth below,as at December 31,2023 and 2022,and for the years then ended,has been derived without material adjustment from,and is qualified in its entirety by,the financial statements contained in Sectio

225、n 7:Consolidated financial statements.It should be read in conjunction with the financial statements,Section 4:Risk,and other financial data included elsewhere in this Annual Report.Key factors affecting Aramcos financial resultsThe following is a discussion of the most significant factors that have

226、 impacted Aramcos financial position,results of operations,and cash flows for the year ended December 31,2023.Supply,demand,and prices for hydrocarbons,and refined and chemicals productsAramcos results of operations and cash flows are primarily driven by market prices and volumes sold of hydrocarbon

227、s,as well as refined and chemicals products.International crude oil prices have fluctuated significantly in the past and may remain volatile.Fluctuations in the price at which Aramco is able to sell crude oil could cause Aramcos results of operations and cash flow to vary significantly.Delivering sh

228、areholder value through resilient performanceFinancial performance Dhahran,Saudi Arabia Aramco has consistently generated value for its shareholders across crude oil price cycles.SAUDI ARAMCO|ANNUAL REPORT 2023331.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORA

229、TE GOVERNANCE5.ADDITIONAL FINANCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTSPortfolio and funding optimization 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(JIGP

230、C).This is the second of three payments received by Aramco as a result of the financing arrangement.The remaining amount to be received under the financing arrangement as at December 31,2023 is SAR 2.0 billion($0.5 billion).With respect to the deferred consideration related to the SABIC acquisition,

231、the Company made total payments in the amount of SAR 117.0 billion ($31.2 billion),in 2023 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 net gain of SAR 5.8 billion($1.5 billion).In relatio

232、n to SABICs agreement to sell its 100%shareholding in Hadeed to PIF,the assets and liabilities of Hadeed were remeasured and classified as held 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 consolidated statement

233、of income.Investments in affiliates and securities In March 2023,Aramco completed its acquisition of Valvoline Inc.s global products business(VGP Holdings LLC)for approximately SAR 10.34 billion($2.76 billion),including customary adjustments.This transaction resulted in Aramco recognizing assets acq

234、uired and liabilities assumed at fair value in the net amount of SAR 9.93 billion($2.65 billion)and goodwill of SAR 0.41 billion($0.11 billion).Subsequent to the acquisition,VGP Holdings LLC contributed revenues of SAR 9.43 billion($2.51 billion)and net income of SAR 0.67 billion($0.18 billion),whic

235、h is included in the consolidated statement of income.With regard to Aramcos acquisition of a 10%equity interest in Rongsheng Petrochemical in July 2023,Aramco recognized an equity investment at fair value through other comprehensive income within investments in securities of SAR 6.4 billion ($1.7 b

236、illion),and a non-current other asset of SAR 5.9 billion($1.6 billion)relating to a payment made for a long-term sales agreement.Government share transfer and Bonus share distribution On April 16,2023,the Government announced it has transferred 4%of the Companys issued shares to Sanabil Investments

237、Company.In addition,on March 7,2024,the Government announced it had transferred an additional 8%of the Companys issued shares to PIFs wholly-owned companies.These private transfers did not affect the Companys total number of issued shares and do not have any impact on the Companys operations,strateg

238、y,dividend distribution policy,or governance framework.The Government remains Aramcos largest shareholder,retaining an 82.19%direct shareholding.On May 8,2023,the Companys Extraordinary General Assembly approved the Board of Directors recommendation to increase the Companys share capital through cap

239、italizing SAR 15.0 billion ($4.0 billion)of the Companys retained earnings to support the distribution of bonus shares to eligible shareholders,in the amount of one share for every 10 shares held.This resulted in the increase of issued ordinary shares from 220 billion to 242 billion and a correspond

240、ing increase in share capital of SAR 15.0 billion($4.0 billion).Shareholder returnsDuring 2023,the Company declared and paid base dividend payments totaling SAR 292.7 billion ($78.0 billion).In addition to the base dividend,the Company established a mechanism for performance-linked dividends to be p

241、aid in the amount of 50-70%of the Groups annual free cash flow,net of the base dividend and other amounts including external investments1.The first performance-linked dividends were calculated based on the Groups combined full-year results of 2022 and 2023 and are intended to be paid over six quarte

242、rs.The first distribution of SAR 37.0 billion($9.9 billion)was paid in the third-quarter of 2023 based on the full-year results of 2022 and the six-month results for the period ended June 30,2023.The second distribution of SAR 37.0 billion ($9.9 billion)was paid in the fourth quarter based on the fu

243、ll-year results of 2022 and the nine-month results for the period ended September 30,2023,resulting in a total payment of performance-linked dividends of SAR 74.0 billion($19.8 billion)in 2023.These dividends payments resulted in a decrease in cash and cash equivalents and a corresponding reduction

244、in shareholders equity in the consolidated balance sheet.1.For the purpose of calculating performance-linked dividends,external investments include acquisition of affiliates,net of cash acquired,additional investments in joint ventures and associates,and certain amounts recognized in net investment

245、in securities.Please see the consolidated statement of cash flows for more information.SAUDI ARAMCO|ANNUAL REPORT 202334Financial performance continuedAll amounts in millions unless otherwise statedSummarized consolidated statement of incomeSARUSD*Year ended December 31Year ended December 31All amou

246、nts in millions unless otherwise stated2023202220232022%changeRevenue and other income related to sales1,856,3732,266,373495,033604,366(18.1)%Operating costs(988,086)(1,122,296)(263,489)(299,279)(12.0)%Operating income868,2871,144,077231,544305,087(24.1)%Income before income taxes and zakat888,0671,

247、152,962236,818307,456(23.0)%Income taxes and zakat(433,303)(548,957)(115,547)(146,388)(21.1)%Net income454,764604,005121,271161,068(24.7)%Average realized crude oil price($/bbl)83.6100.2(16.6)%ROACE*22.5%31.6%22.5%31.6%(9.1)pp*Supplementary information is converted at a fixed rate of U.S.dollar 1.00

248、=SAR 3.75 for convenience only.*Refer to“Non-IFRS measures reconciliations and definitions”for further details.Financial resultsRevenue and other income related to sales for the year ended December 31,2023,was SAR 1,856,373($495,033),compared to SAR 2,266,373($604,366),for the year ended December 31

249、,2022.The decrease of 18.1%was primarily attributable to lower crude oil prices and lower volumes sold,as well as lower refining and chemicals products prices.Operating costs decreased by SAR 134,210($35,790),or 12.0%,from SAR 1,122,296($299,279)to SAR 988,086($263,489),for the years ended December

250、31,2022 and 2023,respectively.This was principally due to a decrease in production royalties resulting from a lower average effective royalty rate,lower crude oil prices and lower volumes sold.Operating costs also decreased due to lower purchases of gas,refined and chemical products partially offset

251、 by an increase in crude oil purchases during the year.Income before income taxes and zakat decreased by SAR 264,895($70,638),or 23.0%,which mainly reflects the impact of the lower crude oil prices and lower volumes sold,weakening refining and chemicals margins.This was partially offset by a decreas

252、e in production royalties.Income taxes and zakat for the year ended December 31,2023,were SAR 433,303($115,547),compared to SAR 548,957($146,388),in 2022.The decrease was mainly driven by lower taxable income recorded in 2023.200222023050,000100,000150,000200,000250,000300,000350,00001530

253、4560759010512040.664.670.5100.283.6Income vs.average realized crude prices($million)$/barrel Operating income Net income Average realized crude priceSAUDI ARAMCO|ANNUAL REPORT 2023351.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FINA

254、NCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTSAll amounts in millions unless otherwise statedSummarized consolidated balance sheetSARUSD*As at December 31As at December 31All amounts in millions unless otherwise stated2023202220232022%changeTotal assets2,477,9402,492,924660,784664,78

255、0(0.6)%Total liabilities740,848826,777197,559220,474(10.4)%Significant balance sheet movements:Short-term investments184,343281,21549,15874,991(34.4)%Property,plant and equipment1,384,7171,303,266369,258347,5386.2%Other assets and receivables(non-current and current)82,01263,47221,87016,92629.2%Cash

256、 and cash equivalents198,973226,04753,05960,279(12.0)%Inventories 85,951100,52822,92026,808(14.5)%Assets classified as held for sale15,4244,113Not applicableBorrowings(non-current and current)290,147393,14477,373104,838(26.2)%Income taxes and zakat payable82,539104,97822,01027,995(21.4)%Deferred inc

257、ome tax liabilities142,449122,31137,98632,61616.5%Trade payables and other liabilities151,553135,39040,41436,10411.9%Gearing*(6.3)%(7.9)%(6.3)%(7.9)%(1.6)pp*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.*Refer to“Non-IFRS measures reconciliat

258、ions and definitions”for further details.Financial positionTotal assets were SAR 2,477,940($660,784)as at December 31,2023,compared to SAR 2,492,924($664,780)as at December 31,2022.The movement was largely due to a decrease in short-term investments,cash and cash equivalents and inventories.This was

259、 partially offset by an increase in property,plant and equipment and other assets and receivables.The decrease in short-term investments reflects the maturities of USD denominated time deposits.The increase in property,plant and equipment reflects increased drilling and development activities relate

260、d to crude oil increments,and ongoing progress of multiple gas projects toward the goal of expanding gas production.This was partially offset by the reclassification of Hadeeds assets as held for sale.The increase in other assets and receivables is mainly due to the recognition of the long-term sale

261、s agreement associated with the Rongsheng Petrochemical acquisition and higher other long-term receivables and advances outstanding at year-end.The lower cash and cash equivalents balance is primarily due to lower earnings during the year and higher cash paid for dividend distributions.This was part

262、ially offset by lower cash paid for settlement of income,zakat and other taxes,and cash inflows from maturities of short-term investments.The change in assets classified as held for sale is due to reclassification of major classes of Hadeeds assets that comprise property,plant and equipment,intangib

263、le assets,inventories,trade receivables,and other assets.The lower inventories balance is principally due to a decrease in crude oil,refined and chemical product inventories compared to the prior year,which is predominantly associated with lower product prices at year end and a reduction in material

264、s and supplies inventories compared to the prior year.Total liabilities were SAR 740,848($197,559)at December 31,2023,compared to SAR 826,777($220,474)as at December 31,2022.The decrease largely reflects the impact of reduction in borrowings and income taxes and zakat payable,partially offset by hig

265、her deferred income tax liabilities and trade and other payables.The reduction in borrowings was predominately driven by the payment of the deferred consideration related to the SABIC acquisition,which was fully settled during the year.Income taxes and zakat payable decreased due to the impact of lo

266、wer taxable income during the year.The increase in deferred income tax liabilities is mainly driven by changes in taxable temporary differences associated with property,plant and equipment,and provisions and other liabilities.Trade payables and other liabilities increased primarily as a result of hi

267、gher purchases and other accrued materials and services outstanding at year-end.SAUDI ARAMCO|ANNUAL REPORT 202336Financial performance continuedSummarized consolidated statement of cash flowsSARUSD*Year ended December 31Year ended December 31All amounts in millions unless otherwise stated20232022202

268、32022%changeNet cash provided by operating activities537,814698,152143,417186,174(23.0)%Net cash used in investing activities(54,019)(389,009)(14,405)(103,736)(86.1)%Net cash used in financing activities(510,869)(382,675)(136,232)(102,047)33.5%Cash and cash equivalents at end of the year198,973226,0

269、4753,05960,279(12.0)%Capital expenditures(158,308)(141,161)(42,215)(37,643)12.1%Free cash flow*379,506556,991101,202148,531(31.9)%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.*Refer to“Non-IFRS measures reconciliations and definitions”for f

270、urther details.Non-IFRS measures reconciliations and definitionsThis Annual Report includes certain non-IFRS financial measures(ROACE,free cash flow,EBIT,and gearing)which Aramco uses to make informed decisions about its financial position,operating performance or liquidity.These non-IFRS financial

271、measures have been included in this Report to facilitate a better 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

272、measures are not defined by,or presented in accordance with,IFRS.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 no

273、n-IFRS financial measures relate to the reporting periods described in this Annual 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

274、 companies do not necessarily calculate these non-IFRS financial 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.As such,these measures should be read and interpre

275、ted in conjunction with the financial statements and other financial data included elsewhere in this Report.Cash flowsNet cash provided by operating activities was SAR 537,814($143,417)for the year ended December 31,2023,compared to SAR 698,152($186,174)reported in 2022.The decrease of SAR 160,338($

276、42,757)mainly reflects lower earnings resulting from lower crude oil prices and lower volumes sold,and weakening refining and chemicals margins.This was partially offset by favorable movements in working capital and a decrease in cash paid for the settlement of income,zakat and other taxes.Net cash

277、used in investing activities was SAR 54,019($14,405)for the year ended December 31,2023,compared to SAR 389,009($103,736)in 2022,resulting in a change of SAR 334,990($89,331).This was primarily due to net cash inflow from maturities of short-term investments compared to a net outflow in 2022,partial

278、ly offset by cash consideration paid for the Valvoline Inc.global products business acquisition and higher upstream capital expenditures.Net cash used in financing activities was SAR 510,869($136,232)in 2023,compared to SAR 382,675($102,047)in 2022.The increase in financing-related cash outflows of

279、SAR 128,194($34,185)predominately reflects payments associated with the performance-linked dividends,an increase of 4.0%in base dividends,and an absence of cash received in connection with Aramcos gas pipeline transaction in the prior year.This was partially offset by an increase in cash proceeds fr

280、om borrowings.All amounts in millions unless otherwise statedReturn on average capital employed(ROACE)SAUDI ARAMCO|ANNUAL REPORT 2023371.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FINANCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINAN

281、CIAL STATEMENTSSARUSD*Twelve months ended December 31Twelve months ended December 31All amounts in millions unless otherwise stated2023202220232022Net income454,764604,005121,271161,068Finance costs,net of income taxes and zakat4,0934,4411,0921,185Net income before finance costs,net of income taxes

282、and zakat458,857608,446122,363162,253As at period start:Non-current borrowings318,380436,37184,901116,366Current borrowings74,76474,55019,93719,880Total equity1,666,1471,280,668444,306341,512Capital employed 2,059,2911,791,589549,144477,758As at period end:Non-current borrowings226,481318,38060,3958

283、4,901Current borrowings63,66674,76416,97819,937Total equity1,737,0921,666,147463,225444,306Capital employed2,027,2392,059,291540,598549,144Average capital employed2,043,2651,925,440544,871513,451ROACE22.5%31.6%22.5%31.6%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3

284、.75 for convenience only.20232022202.531.624.413.228.4ROACE (%)ROACE measures the efficiency of Aramcos utilization of capital.Aramco defines ROACE as net income before finance costs,net of income taxes and zakat,as a percentage of average capital employed,calculated on a 12-month rolling

285、 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 demonstrate to its shareholders that capital has been used effectively.ROACE for the year ended Decembe

286、r 31,2023,was 22.5%,compared to 31.6%in 2022.The decrease in ROACE,calculated on a 12-month rolling basis,was primarily attributable to lower earnings largely reflecting the decline in crude oil prices and lower volumes sold,weakening refining and chemicals margins,and higher average capital employe

287、d.All amounts in millions unless otherwise statedSARUSD*Year ended December 31Year ended December 31All amounts in millions unless otherwise stated2023202220232022Net cash provided by operating activities537,814698,152143,417186,174Capital expenditures(158,308)(141,161)(42,215)(37,643)Free cash flow

288、379,506556,991101,202148,531*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.Aramco uses free cash flow to evaluate its cash available for financing activities,including dividend payments.Aramco defines free cash flow as net cash provided by op

289、erating activities less capital expenditures.Free cash flow in 2023 was SAR 379,506($101,202),compared to SAR 556,991($148,531),in 2022,a decrease of SAR 177,485($47,329)or 31.9%.This was mainly due to lower operating cash flows primarily resulting from lower earnings and higher upstream capital exp

290、enditures,partially offset by favorable movements in working capital,and a reduction in cash paid for the settlement of income,zakat and other taxes.Free cash flow202320222021,202 148,531 107,45549,13778,305Free cash flow ($million)20232022202120202019 306,512230,677 208,046 101,391177,92

291、9EBIT ($million)SAUDI ARAMCO|ANNUAL REPORT 202338Financial performance continuedAramco defines EBIT as net income plus finance costs and income taxes and zakat,less finance income.Aramco believes EBIT provides useful information regarding its financial performance to analysts and investors.SARUSD*Ye

292、ar ended December 31Year ended December 31All amounts in millions unless otherwise stated2023202220232022Net income 454,764604,005121,271161,068Finance income(31,216)(12,425)(8,324)(3,313)Finance costs8,1868,8822,1832,369Income taxes and zakat433,303548,957115,547146,388Earnings before interest,inco

293、me taxes and zakat865,0371,149,419230,677306,512*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.EBIT for 2023 was SAR 865,037($230,677)compared to SAR 1,149,419($306,512),in 2022.This decrease of SAR 284,382($75,835)or 24.7%,principally repres

294、ents the impact of lower crude oil prices and lower volumes sold,and weakening refining and chemicals margins,partially offset by a decrease in production royalties during the year.Earnings before interest,income taxes and zakat(EBIT)All amounts in millions unless otherwise statedGearing is a measur

295、e of the degree to which Aramcos operations are financed by debt and reflects available liquidity 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,i

296、nvestments in debt securities(current and non-current),and non-current cash investments)to total equity 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 rat

297、io was(6.3)%as at December 31,2023,compared to(7.9)%as at December,2022.The increase in gearing reflects the impact of lower net(cash)position and higher total equity.The decrease in net(cash)was largely due to a decrease in short-term investments and cash and cash equivalents,partially offset by a

298、reduction in total borrowings.SARUSD*As at December 31As at December 31All amounts in millions unless otherwise stated2023202220232022Total borrowings(current and non-current)290,147393,14477,373104,838Cash and cash equivalents(198,973)(226,047)(53,059)(60,279)Short-term investments(184,343)(281,215

299、)(49,158)(74,991)Investments in debt securities(current and non-current)1(9,584)(8,565)(2,556)(2,282)Non-current cash investmentsNet cash(102,753)(122,683)(27,400)(32,714)Total equity1,737,0921,666,147463,225444,306Total equity and net cash1,634,3391,543,464435,825411,592Gearing(6.3)%(7.9)%(6.3)%(7.

300、9)%*Supplementary information is converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.1.As at December 31,2023,investments in debt securities(current and non-current)are comprised of SAR 1,249($333)and SAR 8,335($2,223)which form part of other assets and receivables under curre

301、nt assets,and investments in securities under non-current assets,respectively.As at December 31,2022,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 investments in secur

302、ities under non-current assets,respectively.Gearing 20232022202120202019(6.3)(7.9)12.022.2(5.2)Gearing2(%)2.Comparative ratios for the years 2021,2020,and 2019 have been amended to reflect Aramcos revised gearing definition.SAUDI ARAMCO|ANNUAL REPORT 2023391.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AN

303、D PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FINANCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTSSAUDI ARAMCO|ANNUAL REPORT 2023All amounts in millions unless otherwise statedSAUDI ARAMCO|ANNUAL REPORT 202340UpstreamUpstream Newly-installed wellhead platform A

304、rabian Gulf Khurais Oil Train-4 Saudi ArabiaUpstream competitive strengthsUnrivaled scaleOne of the worlds largest producers of crude oil and condensate,with a vast reserves base.Multiple crude gradesAbility to produce a range of crude grades that are highly compatible with most refineries globally

305、and delivered through an established network of access points to the global marketplace.Unique operational flexibilitySpare capacity created by maintaining an MSC provides operational flexibility to rapidly increase crude oil production.12.0mmbpdMSC as at December 31,20235 gradesArabian crude oil pr

306、oducedHydrocarbon reserves under the Concession agreement as at December 31,2023Total daily hydrocarbon production in 2023251.2billion boe12.8mmboedSAUDI ARAMCO|ANNUAL REPORT 2023411.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FINAN

307、CIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTS Hawiyah Gas Plant Saudi ArabiaLarge upstream capital projects Ability to execute some of the worlds largest upstream capital projects.Optimized recovery and depletion ratesProlific reserves and spare capacity allow for balanced production

308、 between maturing and newer production sources to optimize depletion rates and increase capital efficiency.Long reserves lifeStrong track record of low-cost reserve replacement,leveraging cutting-edge reservoir stimulation technologies and proven exploration success.Low upstream carbon intensityEffe

309、ctive reservoir management,a low depletion rate operational model,and a focus on energy efficiency reduce the Companys upstream carbon intensity associated with production of oil,which is one of the lowest among major producers.Low-cost operationsLow lifting costs and capital expenditures per barrel

310、 of oil equivalent produced stemming from the unique nature of the Kingdoms geological formations,the location of reservoirs in favorable onshore and offshore environments,access to a large infrastructure and logistics network,and the scaled application of technology.Average upstream capital expendi

311、tures6.3$/per boe10.7 kgCO2e/boeUpstream carbon intensity207.5tscfNatural gas reserves under the Concession agreement as at December 31,2023High-quality gas reservesExtensive high-quality gas reserves with exclusive access to the Kingdoms large and growing domestic marketplace.Average upstream lifti

312、ng costs3.19$/per boe SAUDI ARAMCO|ANNUAL REPORT 202342Key events in 2023MSC maintainedProgressed engineering,procurement,and construction activities to support the Government mandated MSC of 12.0 mmbpd ensuring spare capacity and operational flexibility to maintain production levels.Hawiyah Gas Pla

313、nt expansion The Hawiyah Gas Plant expansion was successfully commissioned and brought onstream,increasing the plants raw gas processing capacity by 800 mmscfd including approximately 750 mmscfd of natural gas capacity.Unconventional gas development Progressed with the development of the Jafurah unc

314、onventional gas field,which is expected to commence production in 2025.International LNG investment Announced first international investment in LNG by signing definitive agreements to acquire a strategic minority stake in MidOcean Energy for SAR 1.88 billion($0.5 billion).12.0mmbpd1.5bscfdJafurah800

315、mmscfd$0.5bnHawiyah Unayzah Gas Reservoir Storage Hawiyah Unayzah Gas Reservoir Storage,the first underground natural gas storage in the Kingdom,achieved its maximum injection target of 1.5 bscfd.Upstream continuedThe Upstream segment explores for,develops,and produces crude oil,condensate,natural g

316、as,and NGL.Aramco manages the Kingdoms unique reserves and resource base to optimize production and maximize long-term value pursuant to the Hydrocarbons Law,which mandates Aramcos hydrocarbon operations,promotes long-term productivity of the Kingdoms reservoirs,and supports the prudent stewardship

317、of its hydrocarbon resources.As set out in the Concession,Aramco has the exclusive right to explore,develop,and produce the Kingdoms hydrocarbon resources,except in the Excluded Areas,for an initial period of 40 years,which will be extended by the Government for 20 years provided Aramco satisfies ce

318、rtain conditions commensurate with current operating practices.For more information,see Section 6:Additional financial and legal information The Concession.As at December 31,2023,Aramcos reserves under the Concession agreement were 251.2 billion boe(2022:258.8 billion boe),including 191.3 billion ba

319、rrels of crude oil and condensate(2022:200.8 billion barrels),26.0 billion barrels of NGL(2022:25.2 billion barrels),and 207.5 tscf of natural gas(2022:201.9 tscf).The Government sets the Kingdoms maximum level of crude oil production in the exercise of its sovereign prerogative and requires Aramco

320、to maintain MSC in Upstream overviewNasir K.Al-Naimi Upstream PresidentUpstream successfully commissioned long-term projects,progressed multiple growth projects including the Middle Easts largest shale gas development,made multiple discoveries,and initiated our first global liquefied natural gas inv

321、estment,while delivering safe and reliable operations.SAUDI ARAMCO|ANNUAL REPORT 2023431.ARAMCO OVERVIEW AND STRATEGY 2.RESULTS AND PERFORMANCE3.SUSTAINABILITY4.RISK 4.CORPORATE GOVERNANCE5.ADDITIONAL FINANCIAL AND LEGAL INFORMATION6.CONSOLIDATED FINANCIAL STATEMENTSGas discoveries Exploration activ

322、ities resulted in the discovery of two natural gas fields in the Empty Quarter.First unconventional gas productionFirst unconventional tight gas produced from the South Ghawar operational area two months ahead of schedule,marking a milestone in the gas expansion strategy.Gas compression projects ons

323、tream Nine plants placed onstream completing the gas compression projects at the Haradh and Hawiyah fields.9 plants2024Aramcos Upstream segment will continue its investments in future growth projects including crude increments to maintain MSC at 12.0 mmbpd,as well as growing gas production consisten

324、t with the goal of a greater than 60%increase over 2021 production levels by 2030,subject to domestic demand.Outlook for 2024accordance with the Hydrocarbons Law.In January 2024,the Government directed Aramco to maintain MSC at 12.0 mmbpd.This directive will have no impact on announced,near-term pro

325、jects including the Dammam development and the Marjan,Berri,and Zuluf crude oil increments.Production from these projects will be used to maintain MSC at 12.0 mmbpd,which provides operational flexibility to increase production.Aramco also uses this spare capacity as an alternative supply option in c

326、ase of unplanned production outages and to maintain its production levels.Aramco maintained its position as one of the worlds largest producers of crude oil and condensate with an average total daily hydrocarbon production of 12.8 mmboed(2022:13.6 mmboed).For the year ended December 31,2023,approxim

327、ately 84%(2022:85%)of the aggregate hydrocarbon production consisted of liquids,which generally command a higher margin.Average upstream lifting costs in 2023 were SAR 11.96($3.19)per boe produced(2022:SAR 11.44($3.05),while upstream capital expenditures averaged SAR 23.7($6.3)per boe produced(2022:

328、SAR 20.3($5.4).This competitive advantage is a result of the Companys robust fiscal discipline,its low depletion rate operational model,the unique nature of the Kingdoms geological formations,favorable onshore and shallow water offshore environments in which Aramcos reservoirs are located,synergies

329、available from Aramcos use of its large infrastructure and logistics networks,and its scaled application of technology.Given the quality of most of Aramcos reservoirs and its operational model,it is possible to achieve high recovery factors while maintaining relatively low water cut levels for long

330、periods of time.As the sole supplier of gas to the Kingdom and consistent with the Companys strategy to further expand its gas business,Aramco will aim to increase gas production by more than 60%by 2030 compared to 2021 production levels,subject to domestic demand.With this anticipated increase in g

331、as production,Aramco expects an increase of up to one mmbpd in high value associated liquids production,and approximately one mmbpd additional liquids released from the substitution of liquids burning with gas in the utility sector.Aramco announced its first international investment in LNG by signin

332、g definitive agreements to acquire a strategic minority stake in MidOcean Energy.This investment provides the ability to capitalize on demand-led growth for LNG.Upstream hydrocarbon productionYear ended December 3120232022%changeTotal liquids1mbpd10,68211,540(7.4)%Total gas2 mmscfd10,67210,6170.5%To

333、tal hydrocarbon production3mboed12,76713,617(6.2)%1.Total liquids is comprised of crude oil,NGL,and condensate.2.Total gas includes natural gas and ethane.3.Total hydrocarbon production(mboed)is derived from mmscfd(for natural gas and ethane)by dividing the relevant product production by 5.400(in the case of natural gas)and 3.330(in the case of ethane).Upstream financial resultsSARUSD*All amounts