RIYADH – Energy giant Saudi Aramco today posted a 44.4% slump in net profit last year due to lower crude prices, as the coronavirus pandemic weighed heavily on global demand.
“Aramco achieved a net income of US$49 billion (RM201.27 billion) in 2020,” said the company in a statement, compared with US$88.2 billion in 2019.
Saudi Arabia, the world’s biggest crude exporter, was hammered last year by the double whammy of low prices and sharp cuts in production.
“The company displayed strong financial resilience in one of the most challenging periods for the industry,” said the statement.
“Revenues were impacted by lower crude oil prices and volumes sold, and weakened refining and chemicals margins.”
Crude prices have risen in recent weeks to over US$60 per barrel.
But, analysts said the Saudi giant is bracing for a possible further wave of Covid-19 infections that could undermine a tentative global economic recovery and further erode the world’s demand for crude.
Aramco, seen as Saudi Arabia’s cash cow, has revealed consecutive falls in profits since it began disclosing earnings in 2019.
That has piled pressure on government finances as Riyadh pursues ambitious multibillion-dollar projects to diversify its oil-reliant economy.
The company has cut its capital spending and slashed hundreds of jobs as it seeks to reduce costs, Bloomberg News reported last June. – AFP, March 21, 2021
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