The Strategist

Saudi Aramco’s net profit falls by 20.6% in 2019

03/16/2020 - 07:57

Net profit of Saudi Saudi Aramco in 2019 fell by 20.6% to $ 88.2 billion due to lower oil prices and weaker production, the largest oil company in the world reported.

public domain pictures
public domain pictures
"The decrease can primarily be explained by lower oil prices and production volumes, together with lower margins in oil refining and petrochemicals, as well as with $ 1.6 billion loss associated with the Sadara Chemical Company," the statement reads.

According to the results of 2019, the company's free cash flow decreased to $78.3 billion against $85.8 billion a year earlier. Total dividend payments in the reporting period reached $73.2 billion. At the same time, following the results of 2020, the company maintains a plan for total dividend payments in the amount of $75 billion, and will pay them quarterly.

"Dividends for the first quarter are expected to be announced along with the financial results for this period, which are scheduled to be published in May," Aramco writes.

The company also notes that its capital expenditures in 2019 decreased by 6.6% to $ 32.8 billion. AndAramco’s forecast for this indicator for 2020 is in the range of $25-30 billion due to the volatility of prices in the commodity market and current conditions in it.

The company also indicates that by the end of 2019, it remained one of the largest producers of oil and condensate, and hydrocarbon production amounted to 13.2 million barrels of oil equivalent per day.