Saudi Arabia’s state-owned oil and gas company, Abacic Oil, operates an oil-processing facility in Saudi Arabia.
Stanislav Krasilnikov | TASS | Getty Images
Oil giant Saudi Aramco reported a 44% drop in 2020 results, but retained its billion 1 trillion dividend payments, with CEO Amin Nasser calling the last 12 months the most “challenging years” in recent history.
Saudi Aramco, Saudi Arabia’s top state oil company, reported a net income of 49 49 billion in 2020, up from 88 88.19 billion in 2019. The result was slightly lower than analysts’ expectations of .1 48.1 billion, but it still represents any public company globally.
“In the most challenging years in recent history, Aramco has demonstrated its unique value proposition through its remarkable financial and operational agility,” Amin Nasher, chief executive of Saudi Aramco, said in a statement on Sunday.
Aramco said lower crude oil prices and sold volume weighed on revenue, and weakened margins for refining and chemicals.
The firm also said it expects to reduce capital spending in the coming year, and cuts spending guidance from the previous 40 40 billion to around spending 1 billion to around around 1 billion.
Cash-free cash flow has fallen by about 40% to 49 49 billion compared to its approximately expected dividend level. Aramco also announced 75 billion in payments for 2020, despite concerns about taking on additional debt to maintain it.
“Looking ahead, our long-term strategy to optimize our oil and gas portfolio is on track and, as the macro environment improves, we are seeing increasing demand in Asia and also seeing positive signs elsewhere.”
Shares of top Western oil and gas companies, including Royal Dutch Shell and BP, plunged to multi-year levels in 2020 as the global economy was devastated by the coronavirus epidemic and oil prices plunged into a historic slump. ExxonMobil, America’s largest energy company, posted its first annual loss.
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