São Paulo – Saudi Aramco Q1 net income slid to a nonetheless solid USD 16.6 billion, down 25% year-on-year, it reported on its website this Tuesday (12). Q1 2019 had seen Saudi Aramco net USD 22.2 billion.
Saudi Aramco is the world’s biggest oil company in output and reserves. Right now, oil prices are at one of the lowest levels in five years. It paid USD 13.4 billion in dividends to shareholders, with an additional USD 18.75 billion expected in Q2.
Aramco said it delivered solid earnings and strong cash flows combined with reliable operational performance, despite economic disruptions and volatility in commodity prices globally. It also said that even though net income slid, it paid dividends as promised, to an amount that ranks it among the highest-paying listed companies in the world.
The Saudi Arabian oil company reported that as a result of coronavirus, it implemented “active prevention programs at its sites and contingency plans to minimize the risk related to the pandemic on its operations.” It said it undertook measures to “ensure business continuity and to safeguard the wellbeing of its employees, such as the implementation of a work-from-home policy and adopting strict sanitization measures across its facilities. Aramco will “take further actions as necessary and appropriate.”
Saudi Aramco expects to invest between USD 25 billion and USD 30 billion this year, “in light of market conditions and recent commodity price volatility.” This should be down USD 2.8 billion to USD 7.8 billion from USD 32.8 billion invested last year.
Translated by Gabriel Pomerancblum
