“Aramco” Reveals Reason For “Sudden” Drop In Profits In First 9 Months Of 2020 … And That Is Why It Has Increased Again In Current Quarter

Al-Marsad Journal: Profits of “Saudi Aramco”, the world’s largest national oil company, fell to 131.3 billion riyals at the end of the first nine months of 2020, or 49%, from profits of 255 , 7 billion riyals made during the same period in 2019.

The company said the reason for the decline in profits in the current period compared to the same period in 2019 is due to the decline in crude oil prices and sales volume, and the weakness profit margins in the refining and chemicals business, compared to the company’s net profit for the same period in 2019, which was 255.7 billion riyals.

This was partially offset by the decrease in proceeds from crude oil production resulting from lower prices and sales volume, as well as lower rental rate from 20% to 15%, lower taxes on profits and zakat due to declining profits and increasing other income from sales of gas products.

The company attributed the reason for the increase in profits in the current quarter compared to the previous quarter to the rise in crude oil prices. This increase was partially offset by the decrease in the volume of crude oil sales, in addition to an increase in revenue and zakat taxes due to the increase in profits for the third quarter.