Saudi Aramco: profits fell 20 percent in 2019 …

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The profits of Saudi Aramco decreased by 20.6 percent in 2019, according to the first annual results published by the oil company on the financial market website that it entered last December as part of the largest IPO in history.

The company said in a statement on Sunday that the net income amounted to about 88.2 billion dollars in 2019 compared to more than 111 billion in 2018, noting that one of the most important reasons for the decline in profits in the largest listed company in the world is due to lower crude prices.

The financial results for the year 2019 of the world’s richest energy company were not affected by the new Corona virus or the disintegration of the “OPEC +” alliance that caused the collapse of oil prices, as these developments took place this year.

The energy giant had collected at the end of last year a record amount exceeding $ 25 billion due to the sale of 1.75 percent of its shares in an initial public offering in the local market, to become the largest company listed in the financial market.

In April 2019, Aramco opened its books of rating agencies for the first time, showing that it is the most profitable company in the world.

Sunday’s results are the first that Aramco publishes directly to investors and the public.

“Net income reached 330.7 billion riyals ($ 88.2 billion) for the entire year of 2019, compared to 416.5 billion riyals ($ 111.1 billion) in 2018,” Aramco said in a statement, a decline of 20.6 percent. .

According to Aramco’s president and chief executive officer, Amin Al-Nasser, 2019 was “an exceptional year for Aramco.”

Al-Nasser stressed that Aramco will strive in 2020 to adapt to the consequences of the spread of the emerging Corona virus on oil prices.

“There is no doubt that the recent outbreak and rapid spread of the Covid-19 virus reflects the importance of being able to adapt to various situations in an ever-changing world. This concept is a fundamental pillar of Saudi Aramco’s strategy, and the company will work to maintain the strength of its business and its financial aspects.”

“The company has taken a package of necessary precautions, and has taken measures to rationalize planned capital spending in 2020,” he added.

Al-Nasser said that the company “will continue to focus on the dual challenge of meeting the growing global demand for energy while responding to the growing desire of societies to obtain clean energy with lower carbon emissions.”

The company’s net profit for the first nine months of last year decreased by 18 percent from 83.3 billion dollars to 68.2 billion dollars, and its revenues decreased due to the drop in oil prices.

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Read more in: The Gulf





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