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The Markets
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Oil & Gas

Tough year for Saudi Aramco as it makes a mere US$49bn profit

The world's largest oil company still intends to pay US$75bn of dividends, despite cash flow falling 40% amidist the pandemic.

Financial results from Saudi Aramco, the world’s largest oil company, expectedly showed the impact of the weak oil price in 2020, but the state-backed group is sticking to a US$75bn dividend promise.

Profit slumped 44% to US$49bn from US$88.19bn in 2019, which was a shade beneath market projections.

Cash flow was down 40% to US$49bn, nonetheless, the proposed dividend for 2020 will still be US$75bn it said.

Aramco said it would cut capital spending in the current year to around US$35bn, from prior guidance of US$40-45bn.

“In one of the most challenging years in recent history, Aramco demonstrated its unique value proposition through its considerable financial and operational agility,” chief executive Amin Nasser said in a statement.

A portion of shares in the Saudi state oiler were floated in Riyadh, on the Saudi Stock Exchange, in 2019.

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