Saudi Aramco makes US$88bn profit in 2019

Saudi Aramco Rig 1The Saudi Arabian Oil Company (Saudi Aramco) has announced its full-year 2019 financial results, delivering strong profits and dividends despite a lower price environment and challenging margins in refining and chemicals

The company stated that the net income was US$88.2bn for the full-year 2019, compared to US$111.1bn in 2018. The decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins, and a US$1.6bn impairment associated with Sadara Chemical Company.

In December 2019, Saudi Aramco completed the world’s largest initial public offering. This followed a $12 billion inaugural international bond issuance in April 2019.

Commenting on the results, Saudi Aramco President and CEO Amin H. Nasser, said, “2019 was an exceptional year for Saudi Aramco. Through a variety of circumstances – some planned and some not – the world was offered unprecedented insight into Saudi Aramco’s agility and resilience.

“Our unique scale, low costs, and resilience came together to deliver both growth and world-leading returns, while also maintaining our position as one of the world’s most reliable energy companies.

“These strengths, combined with a strong balance sheet and a disciplined and flexible approach to capital allocation, allow us to underpin our goal of sustainably growing free cash flow to support dividends to our shareholders despite continued volatility of markets.

“The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape. This is central to Saudi Aramco’s strategy and we will ensure that we maintain the strength of our operations and our finances. In fact, we have already taken steps to rationalize our planned 2020 capital spending.

“As the world deals with the difficult and dual challenge of satisfying demand for more energy alongside responding to the rising desire for cleaner energy, I believe we are well-positioned given our oil production is among the least carbon-intensive in the world.”

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