Date: 15 March 2020 , 20:29
News ID: 8736
NEWS SERVICE: ENERGY

Aramco 2019 Profit Down by 21%

Oil giant Saudi Aramco on Sunday posted a 21% decline in 2019 net profit due to a drop in oil prices and production, and said it plans to “rationalize” capital spending in the wake of the coronavirus outbreak.
Aramco 2019 Profit Down by 21%

This was Aramco’s first earnings announcement after it listed in December in a record $29.4 billion initial public offering that valued the company at $1.7 trillion, Reuters Reported.

Its shares fell below the IPO price last week for the first time, as oil prices crashed after the collapse of an output deal between OPEC and non-OPEC members which led to an oil price war between Riyadh and Moscow. 

Aramco CEO Amin Nasser said in a statement the oil giant has taken steps to rationalize planned capital spending in 2020 following the coronavirus outbreak. 

“The company expects capital spending for 2020 to be between $25 billion and $30 billion in light of current market conditions and recent commodity price volatility. Capital expenditure for 2021 and beyond is currently under review,” Aramco said in a statement. 

Despite a drop in income, Aramco said it paid a dividend of $73.2 billion in 2019 and intends to declare a cash dividend of $75 billion in 2020, paid quarterly. 

Aramco, which is 98% owned by the Persian Gulf oil kingdom, reported a net profit of $88.2 billion in 2019, down from $111.1 in 2018. 

Analysts had expected Aramco to post a net profit of 346.6 billion riyals ($92.6 billion) in 2019, according to an estimate of 15 analysts polled by Refinitiv.

source: Financial Tribune
Aramco oil Coronavirus price Persian Gulf
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