Saudi Aramco Reports Fall of More Than 20% in Net Profit in 2019

MOSCOW (Sputnik) - The net profit of Saudi Aramco fell by 20.6 percent in 2019 — to $88.2 billion from $111.1 billion in 2018 — the company said on Sunday in a press release.
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"Net income was $88.2 billion for the full-year 2019, compared to $111.1 billion in 2018", Saudi Aramco said.

The company added that the decrease in net profit was mainly due to low oil prices and low production volumes, "coupled with declining refining and chemical margins".

Saudi Aramco also reported a decrease in free cash flow — from $85.8 billion in 2018 to $78.3 billion last year, — and a decrease in capital expenditures — from $35.1 billion in 2018 to $32.8 in 2019.

"The Company expects capital spending for 2020 to be between $25 billion and $30 billion in light of current market conditions and recent commodity price volatility", Saudi Aramco added.

The oil market is currently experiencing high volatility after Russia and the Saudi-led OPEC failed to agree on deeper production cuts to mitigate demand lost to the coronavirus crisis. As a result, restrictions on oil production of the OPEC+ alliance will be lifted beginning on 1 April. Saudi Aramco has already announced plans to increase oil deliveries.

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