Saudi Aramco’s earnings fall after a year hit by Covid and maintain dividends – tech2.org

Saudi Aramco’s earnings fall after a year hit by Covid and maintain dividends


A worker at an oil processing facility of Saudi Aramco, a Saudi Arabian state oil and gas company, in the Abqaiq oil field.

Stanislav Krasilnikov | TASS | fake images

Oil giant Saudi Aramco reported a 44% drop in full-year 2020 results, but maintained its dividend payment of $ 75 billion, with CEO Amin Nasser describing the past twelve months as one of the longest years. “challengers” in recent history.

Saudi Aramco, Saudi Arabia’s giant state oil company, reported net revenue of $ 49 billion in 2020, down from $ 88.19 billion in 2019, slightly below analysts’ expectations of $ 48.1 billion. , but it still represents the highest of any public company globally.

“In one of the most challenging years in recent history, Aramco demonstrated its unique value proposition through its considerable financial and operational agility,” Saudi Aramco CEO Amin Nasser said in a company statement Sunday. .

Aramco said revenues were affected by lower crude prices and volumes sold, and weakened refining and chemicals margins.

The firm also said it expects to cut capital expenditures in the next year and lowered its spending guidance to around $ 35 billion from a range of $ 40 billion to $ 45 billion previously.

Free cash flow plunged nearly 40% to $ 49 billion, well below the level of its long-awaited dividend. Aramco also declared a payment of $ 75 billion for 2020, despite concerns that it would take on additional debt to maintain it.

“Looking ahead, our long-term strategy to optimize our oil and gas portfolio is on the right track and, as the macro environment improves, we are seeing a rebound in demand in Asia and positive signs elsewhere as well.” he added.

Shares of major Western oil and gas companies, including Royal Dutch Shell and BP, fell to multi-year lows in 2020 as the coronavirus pandemic wreaked havoc on the global economy and caused a historic collapse in the price of oil. . Exxon Mobil, America’s largest energy company, posted its first annual loss.

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