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Saudi Aramco's Q2 2020 Report: Net Profit Fell Almost Four Times

Saudi Aramco's Q2 2020 Report: Net Profit Fell Almost Four Times

The net profit of the world's largest oil company by production and reserves, Saudi Aramco, was $6.6 billion in the second quarter of 2020, compared to $24.7 billion a year earlier, according to the company's report. Thus, the decrease was 3.7 times. Half-year profit halved to $23.2 billion.

Aramco navigated challenging market conditions to record net income of $6.6 billion for the second quarter and $23.2 billion for the first half of 2020, respectively, compared to $24.7 billion and $46.9 billion in the corresponding periods of 2019. This demonstrates Aramco’s agility, strength and resilience across market cycles.

The decline in this indicator is explained by the coronavirus pandemic and, as a result, the deterioration of the price situation. Despite this, the company increased its dividend to shareholders from $13.4 billion in the first quarter of 2020 to $18.75 billion in the second quarter.

Despite continued global economic disruption and challenges facing the energy sector, Aramco continued to deliver on its commitment to shareholders by declaring a dividend of $18.75 billion for the second quarter, compared to $13.4 billion for the second quarter of 2019.

Free cash flow for the reporting period was $6.1 billion, down more than three times year-on-year, and $21.1 billion in the first half of the year (down 1.8 times year-on-year). The company does not specify the amount of revenue for this period.

The company's Capex indicator for the quarter is $6.2 billion, for the half-year - $13.6 billion, and for the year-end, the company will reduce it from $30 billion to $25 billion.

The company's hydrocarbon production in the second quarter was 12.7 million barrels per day of oil equivalent, with oil production at a maximum of 12.1 million barrels per day.

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