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Saudi Aramco's net profit almost halved in 2020

Near East / Business and Finance

Saudi Aramco's profits in 2020 were $ 49 billion, nearly half of $ 88.2 billion in 2019 and almost three times less than $ 111.1 billion in 2018.

Saudi Aramco's net profit almost halved in 2020

The net profit of the Saudi state oil company Saudi Aramco in 2020 decreased by 1.8 times and amounted to $ 49 billion against $ 88.2 billion a year earlier, according to the company's statements published on Saturday.

The company released its financial results a year after the pandemic drove oil prices to an all-time low as people stopped moving around the world to stop the virus from spreading.

Saudi Aramco President Amin al-Nasser said that last year was one of the most difficult in the company's history due to the consequences of the coronavirus pandemic.

“However, as a result of the increased focus on capital and operational efficiency, the company's financial position remained strong, and in 2020 Saudi Aramco announced a dividend payment to shareholders in the amount of $ 75 billion,” Amin al-Nasser added.

Almost all of the dividends go to the Saudi Arabian government, which owns more than 98% of the company.

The average level of production in 2020 in the company amounted to 12.4 million barrels of oil equivalent per day, of which oil accounts for 9.2 million barrels per day. In April 2020, oil production in Saudi Arabia reached an all-time high of 12.1 million barrels per day, but the OPEC + deal forced the country to cut production.

In recent weeks, the price has risen due to easing travel restrictions, increased trade, and more people vaccinated against COVID-19. Nevertheless, analysts warn that demand is still far from the peak.

Earlier this month, the kingdom said it would extend its voluntary production cut by 1 million barrels per day until at least April. Most of the oil cartels OPEC and allied countries also left their production cut. Saudi Arabian officials have called for caution, arguing that the global economic recovery could still be undermined by new restrictions associated with the rapidly spreading new variants of the virus.

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