Saudi Aramco profit drops 50% for first half of the year as pandemic batters oil price
An offshore drilling platform stands in shallow waters at the Manifa offshore oilfield, operated by Saudi Aramco, in Manifa, Saudi Arabia.
Simon Dawson | Bloomberg | Getty Images
Oil giant Saudi Aramco has reported a 50% fall in net income for the first half of its financial year, reflecting a devastating year for oil markets and the global economy at large as the world continues to battle the coronavirus pandemic.
In a release published Sunday, the company said net income plunged to $23.2 billion in the first six months of the year, down by half from $46.9 billion over the same period in 2019.
Saudi Arabia’s majority state-owned oil company and the world’s largest crude producer also maintained its second-quarter dividend of $18.75 billion, saying it will be paid in the third quarter. Its first-quarter dividend of the same amount was paid in the second quarter.
Total free cash flow at the company came in at $21.1 billion for the first half, down from $38 billion the year before.
The results come a week after Aramco ceded its title as the world’s largest listed company by market capitalization to Apple.
The financial results for the second quarter reflect the biggest shock to global energy markets in decades.
“Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results,” Aramco President and CEO Amin Nasser said in the release.