Anonymous ID: 47a4ca March 15, 2020, 6:46 a.m. No.8424042   🗄️.is đź”—kun   >>4049 >>4090

Saudi Aramco's 2019 profit down 21%, cuts spending

 

The giant oil producer’s earnings statement for 2019 provides a bleak backdrop for 2020

 

Saudi Arabia’s state oil giant Aramco (2222.SE) said on Sunday its 2019 profit fell almost 21% due to lower crude oil prices and a drop in production volumes. Aramco posted a net profit of 330.69 billion Saudi riyal ($88.11 billion) after zakat and tax in the period ended Dec. 31, down from 416.52 billion riyals a year earlier. Analysts expected Aramco to post a net profit of 346.6 billion riyals ($92.35 billion) in 2019, according to an estimate of 15 analysts polled by Refinitiv.

 

Aramco, the world’s top oil producing company, raised $29.4 billion in a record initial public offering in December last year. Despite the economic headwinds and low oil prices, Aramco will be able to maintain good dividends at a price of $40 or even $20 bp for Brent crude.”

 

Aramco said in its release that in response to price volatility it would most likely cut capital spending to between $25 billion and $30 billion for 2020 compared to $32.8 billion in 2019. At the same time, the company recently announced plans to increase production capacity by a billion barrels a day to 13 billion barrels a day as part of the saber-rattling with Russia. A production increase of that magnitude will most likely require large expenditures on drilling and other operations

 

https://www.reuters.com/article/us-saudi-aramco-instantview/saudi-aramcos-2019-profit-down-21-cuts-spending-idUSKBN2120K4