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Saudi Aramco reported a sharp drop in profits as the energy giant cut production and oil prices plunged in 2023.
Despite record growth in 2022, profits fell 25% to $121bn (£91bn).
However, this figure remains the second-highest profit for a state-owned company in history.
The company said it would increase payouts to shareholders and explore investment opportunities in China.
The dividend will rise to $98 billion, almost a third more than in 2022, when it posted a record profit of $161 billion, thanks to the impact of Russia's war in Ukraine on energy prices. Oil prices will reach $130 per barrel in 2022.
The Saudi state owns nearly 95% of the company, and the huge profits put the kingdom in the black in 2022.
In 2023, oil prices returned to $85 per barrel. Additionally, Saudi Aramco has cut production to support oil prices, making profits even tighter.
Aramco CEO Amin Nasser said in a statement: “In 2023, we achieved our second-highest net profit on record. Against a backdrop of economic headwinds, our resilience and agility demonstrated our health. This contributed to strong cash flow and a high level of profitability.”
Saudi Arabia aims to use revenues from the energy sector to fund the transition and diversify the country's economy.
Nasser said the company plans to make some announcements regarding renewable energy investments in Saudi Arabia this year.
But he also said oil majors were exploring investment opportunities in China, where demand for oil is rising.
“At this point in time, early 2024, Chinese demand is healthy and growing,” Nasser told reporters.
Saudi Aramco is already investing in refineries in China.
He predicted the oil market in 2024 would be “pretty strong” with demand only slightly higher than last year.
He also said talks were underway between French automaker Renault, which makes engines for hybrid cars, and China's Geely over partnership rights.
