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A worker at an oil processing plant of Saudi Aramco, a Saudi state-owned oil and gas company, in the Abqaiq oil field.
Stanislav Krasilnikov | TASS | Getty Images
Oil giant Saudi Aramco reported a 44% drop in full year 2020 results, but maintained its $ 75 billion dividend payout, with CEO Amin Nasser describing the past twelve months as one of the “Most difficult years” in recent history.
Saudi Aramco, Saudi Arabia’s giant state oil firm, reported net profit of $ 49 billion in 2020, up from $ 88.19 billion in 2019. The result was slightly lower than analysts’ expectations of 48. $ 1 billion, but still represents the highest of all public enterprises in the world.
“During one of the most difficult years in recent history, Aramco has demonstrated its unique value proposition through its great financial and operational agility,” Saudi Aramco chief executive Amin Nasser said on Sunday in a press release from the company.
Aramco said revenues had been affected by falling crude oil prices and volumes sold, and weakening refining and chemicals margins.
The company also said it plans to cut capital spending in the coming year and lowered its spending forecast to around $ 35 billion from a range of $ 40 billion to $ 45 billion. before.
Free cash flow fell nearly 40% to $ 49 billion, well below the level of its highly anticipated dividend. Aramco also declared a payment of $ 75 billion for 2020, despite fears of taking on additional debt to keep it going.
“Looking ahead, our long-term strategy to optimize our oil and gas portfolio is on track and, as the macroeconomic environment improves, we are seeing demand pick up in Asia and also positive signs elsewhere, ”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 ravaged 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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