A worker at an oil processing plant in Saudi Aramco, a state-owned oil and gas company in Saudi Arabia, at the Abqaiq oil field.
Stanislav Krasilnikov | TASS | Getty Images
Oil giant Saudi Aramco reported a 44% drop in 2020 results, but maintained its $ 75 billion dividend payment, with CEO Amin Nasser describing the last twelve months as one of the most “challenging years” in history. recent.
Saudi Aramco, the Saudi oil company, reported net income of $ 49 billion in 2020, down from $ 88.19 billion in 2019. The result was slightly below analysts’ expectations of $ 48.1 billion, but represents continue the largest of all public companies globally.
“In one of the most challenging years in recent history, Aramco has demonstrated its unique value proposition through its considerable financial and operational agility,” Saudi Aramco CEO Amin Nasser said on Sunday.
Aramco said revenues were affected by lower crude oil prices and volumes sold and weakening refining and chemical margins.
The company also said it expects to cut capital spending next year and has reduced its spending guidelines to about $ 35 billion, from a range of $ 40 billion to $ 45 billion previously.
Free cash flow fell nearly 40 percent to $ 49 billion, well below its highly anticipated dividend level. Aramco also said a $ 75 billion payment for 2020, despite concerns that it will take on additional debt to maintain it.
“Looking to the future, our long-term strategy for optimizing our oil and gas portfolio is on track, and as the macro environment improves, we see an increase in demand in Asia and positive signs elsewhere.” he added.
Shares in Western oil and gas companies, including Royal Dutch Shell and BP, fell to multi-year lows in 2020 as the coronavirus pandemic destroyed the entire global economy and triggered a historic drop in oil prices. Exxon Mobil, the largest energy company in the United States, recorded its first annual loss.