Week 19 in Review: Strong financials, emphasizing investment at OTC, and the return of the Travel Show

Aramco continued to show its resilience and commitment to long-term shareholder value as it announced another robust quarterly earning.

That tops the week’s headlines. Here’s a quick look at that and some of the other key articles this week on Aramco LIFE.

Robust growth, strong first quarter financials

Reinforcing its commitment to maximize long-term shareholder value, Aramco in reporting its first quarter results for 2023 announced it planned to introduce a mechanism for performance linked dividends — in addition to the base dividend the company currently distributes.

Our growth strategy remains on track and we made significant progress on the strategic expansion of our Downstream business during the quarter, announcing a key acquisition in the U.S. as well as important investments and partnerships in China and South Korea.
— Amin Nasser

Some of the key highlights for the Q1 announcement were:

• Net income: $31.9 billion (Q1 2022: $39.5 billion)
• Cash flow from operating activities: $39.6 billion (Q1 2022: $38.2 billion)
• Free cash flow1: $30.9 billion (Q1 2022: $30.6 billion)
• Gearing ratio1: -10.3% as of March 31, 2023, compared to -7.9% at the end of 2022
• Q4 2022 dividend of $19.5 billion paid in the first quarter; representing a 4.0% increase on the previous quarter
• Q1 2023 dividend of $19.5 billion to be paid in the second quarter

Highlighting the importance of investment at the Offshore Technology Conference

Aramco’s presence at this year’s OTC showed how the company continues to invest in oil and gas while working side-by-side with alternatives and new uses for hydrocarbons to reach a net zero future.

Company professionals addressed this year’s theme, “Delivering the Future of Offshore Energy” not only through 18 technical papers and daily in-booth presentations from its researchers, but also through discussions focused on decarbonization that addressed offshore CO2 storage, overcoming challenges in carbon capture, storage, and utilization, and improving enhanced oil recovery projects with novel technologies and sustainable chemical applications. 

Aramco’s senior vice president of Procurement and Supply Chain Management, Mohammad A. Al Shammary, emphasized the importance of partnerships in achieving these goals.

Without partnerships, we can’t develop and accelerate these new technologies
— Mohammad A. Al Shammary

He pointed to Aramco’s $1.5 billion Sustainability Fund that help accelerate new technologies in addressing complex climate challenges, as well as the company’s work on developing a hydrogen business.

“The company is targeting the production of up to 11 million tonnes per annum of blue ammonia by 2030,” Al Shammary said. 

Aramcon recognized for pioneering innovations

The Offshore Technology Conference recognized the pioneering innovations made by Guodong “David” Zhan with a 2023 Distinguished Achievement Special Citation Award on April 30, as it kicked off this year’s conference. 

For 30 years, Zhan has dedicated his life’s work to advancing materials research. He has applied this knowledge to the energy industry, focusing on advanced drilling tools and the advanced polycrystalline diamond compact (PDC) drilling bit. Simply put, the vital drill bit at the tip of the drillstring that cuts into rock when drilling for oil and gas has undergone landmark developments due to Zhan’s work. 

Zhan has worked as a science specialist at Aramco’s Exploration and Petroleum Engineering Center — Advanced Research Center (EXPEC ARC) in the Drilling Technology Division. Prior to that he worked in research and development and management positions in academia and industry across the globe in China, the U.K., Japan, the U.S., and Saudi Arabia. He has made significant contributions at internationally renowned universities and national institutes as well as global Fortune 500 companies. 

Zhan’s fundamental research in nanomaterials and nanotechnology is internationally influential representing breakthroughs in applied material science beyond the oil and gas industry with more than 210 peer-review papers, over 150 patents, and citations, widely considered to be an indicator of a published work’s significance, near 6,000. 

It’s back! Aramco Travel Show offers travel bargains, lucky draws, and more

Find inspiration for your next adventure, explore the latest travel trends, and meet fellow intrepid explorers without leaving Dhahran — after a three year break due to COVID, the Aramco Travel Show is back.

Running from May 16 to 17 at the North Park Auditorium, the Aramco Travel Show offers many benefits, including attractive discounts, special giveaways and lucky draws, direct interaction with service providers, and more.

Meet Abdullah

Meet Abdullah Al-Qahtani.

As a firefighter in Aramco’s Fire Protection Department, he knows his profession is more than a job; it’s a way of life.

The challenging nature of his job, teamwork, and the crucial role he plays in protecting communities keeps him inspired every day.

Watch the video to discover more.