Worker at a Saudi Aramco oil processing facility, a state-owned Saudi Arabian oil and gas company, at the Abqaiq field.
Stanislav Krasilnikov | TASS | Getty Images
Oil giant Saudi Aramco reported a 44% drop in full-year 2020 results, but maintained its $ 75 billion dividend payment, with CEO Amin Nasser describing the past twelve months as one of the “most difficult” years in recent history.
Saudi Aramco, Saudi Arabia’s small state-owned company, reported net income of $ 49 billion in 2020, up from $ 88.19 billion in 2019. The result was slightly below analysts ’expectations of $ 48.1 billion , but still represents the highest of any public company globally.
“In one of the most challenging years in recent history, Aramco demonstrated its unique value proposition through its considerable financial and operational agility,” said Amin Nasser, CEO of Saudi Aramco on Sunday.
Aramco said revenues were affected by declining crude oil prices and volumes, and declining refining and chemical margins.
The firm also said it expects to reduce capital spending over the next year and reduced its spending orientation to about $ 35 billion, from $ 40 billion to $ 45 billion previously.
Free cash flow fell nearly 40 percent to $ 49 billion, well below the level of its expected dividend. Aramco also declared a $ 75 billion payment for 2020, despite concerns that it would take on additional debt to maintain it.
“Looking to the future, our long-term strategy to optimize our oil and gas portfolio is well on track and as the macro environment improves, we see a recovery in demand in Asia and also positive signs in other places, “he added.
Shares of major Western oil and gas companies, including Royal Dutch Shell and BP, fell to multi-year lows in 2020, as the coronavirus pandemic destroyed the global economy and caused a historic collapse in the price of oil. oils. Exxon Mobil, the largest U.S. energy company, recorded its first annual loss.