Now Reading
Saudi Aramco reports 21% profit drop for 2019 on lower oil prices

Saudi Aramco reports 21% profit drop for 2019 on lower oil prices

Brent crude averaged $64.12 a barrel in 2019 compared with $71.67 the previous year

Saudi Aramco, the spearhead of the kingdom’s oil price war, posted a 21 per cent drop in full-year profit and cut planned 2020 capital expenditure.

The oil giant cited lower crude oil prices and production for the decline in profit. It’s the first time Aramco reported results as a listed company since its record $29bn share sale in December.

Key 2019 numbers:

Net income including minority interests: SAR330.7bn ($88bn) vs SAR416.5bn a year ago

Revenue: SAR1.11 trillion vs SAR1.19 trillion

Analysts’ estimate: SAR1.2 trillion (range: SAR1.14 tillion to SAR1.24 trillion; 12 analysts)

Operating profit: SAR674.9bn vs SAR798.4bn

Analysts’ estimate: SAR685bn (range: SAR667bn to SAR712bn; 15 analysts)

Expects capital spending for 2020 to be between $25bn and $30bn in light of current market conditions and recent commodity price volatility

Capital expenditure last year was $32.8bn compared with $35.1bn in 2018

An oil-price war led by Saudi Arabia, which holds all but 1.5 per cent of Aramco’s shares, and Russia threatens more pain for the company as producing nations prepare to boost supplies at discounted prices to markets already reeling from weak demand. Crude oil has lost half of its value since the beginning of the year.

Prices fell last year even as Saudi Arabia trimmed output as part of the joint effort between OPEC and producers like Russia to rein in production. Drone and missile attacks on two of Aramco’s biggest oil facilities in September temporarily slashed production by more than half, but didn’t cause a big surge in prices.

Brent crude averaged $64.12 a barrel in 2019 compared with $71.67 the previous year. Saudi production slipped to an average of 9.83 million barrels a day from 10.65 million in 2018, according to data compiled by Bloomberg. The company had restored output to pre-attack levels by early October.

You might also like

© 2020 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top