Saudi Aramco reported that profit fell sharply in 2020

The company announced on Sunday that its net profit fell 44.4% to $ 49 billion in 2020. Given that significant blow, Saudi Aramco has pledged to spend less this year than anticipated: Aramco said it intends to spend about $ 35 billion. $ 20 billion in capital spending in 2021, sharply declining from its previous estimate of $ 40 billion to $ 45 billion.

However, the oil company has been optimistic about the future: it has maintained a $ 75 billion dividend for that year, and the company believes it will return to pre-pandemic oil production levels by the end of 2021.

Saudi Aramco President and CEO Amin Nasser said in a call with reporters that he is very optimistic about 2021 and expects the company to reach nearly 99 million barrels a day by the end of the year. He said that this perspective is based on the views of different global entities and agencies and predicted that demand will increase in 2022.

“Using the vaccine will improve the situation,” he added.

The decline in profit reflects the effect of the coronavirus pandemic on global energy markets.

“Because the enormous impact of Covid-19 has been felt throughout the global economy, we have intensified our strong emphasis on capital and operational efficiency,” Nasser said.

The earnings report comes at a time when Saudi Aramco refineries are facing drone strikes by Iran-backed Houthi rebels in Yemen.

“Our reliability in 2020, despite Covid-19 and these attacks on various parts of our facilities in the north and south and Ras Tanura, has been 99.9% lately,” Nasser said. “It’s even bigger than in previous years.”

It is an additional demonstration of the robust crisis management and continuity plans we have. “

– CNN’s John Defterios contributed to this report.

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