Saudi Arabia’s national oil company Saudi Aramco said on Sunday its net income had fallen 44 percent to $ 49 billion last year, as low oil prices cut epidemic earnings.
The company’s chief executive, Amin H. Nasser described 2020 in a statement With earnings figures as “one of the most challenging years in recent history”.
But Aramco, the world’s largest oil producer, said it would pledge to pay a $ 75 billion dividend. Almost all payments will go to the Saudi government, which is about 98 percent of the company.
Company was listed The largest valuation for an initial public offering on the local Tadawul Exchange in 2019.
Despite the listing, the Saudi government has maintained its stranglehold on the company’s oil production policies, leading to a roller coaster year. On orders from the Saudi government, the company increased oil production in the spring until 2020 A price war with Russia. The increase prompted the company to face record production levels of 12.1 million barrels a day in April and contributed to a glut of oil and a sharp drop in global prices.
more recently, Aramco has started production back Under an agreement with other members of the Organization of Petroleum Exporting Countries, as well as Russia and some other producers, a group called OPEC Plus. In January, Saudi Arabia said it would cut an additional 1 million barrels a day, which is below the quota agreed with OPEC Plus, a policy it continues. Average production for 2020 was 9.2 million barrels a day.
The data released on Sunday showed that Aramco is paying more money in dividends in earnings from oil activities. Free cash flow, a measure of income after expenses, was also $ 49 billion, meaning, the company was borrowing $ 26 billion to pay shareholders.
In another reflection of last year’s tumors in the oil markets, the company cut capital expenditures by 18 percent compared to 2019, to $ 27 billion. Aramco said it expects capital expenditures to be around $ 35 billion in 2021, which is lower than its previous guidance of $ 40 billion to $ 45 billion.
In recent years Aramco has held the award as the most profitable company in the world. But the impact of the epidemic, which caused some oil futures to fall below zero, as well as the appeal of tech products and services while people worked from home, allowed Apple to move forward. Apple’s net income For its fiscal year 2020, which ended on September 26, was $ 57 billion.
The earnings statement on Sunday was limited to a few highlights. Saudi Aramco is expected to provide more details during a call with financial analysts on Monday.