Saudi Aramco is latest oil giant to be hit – profits plunge 73pc

oil prices

The Saudi state oil group, Aramco, shared its Q2 results on Monday – revealing a 73% dive in net profits.

According to the group, the global pandemic has been a challenging period hitting all in the energy sector. Despite the difficult conditions, Saudi Aramco has proved resilience.

Net profits from $24.7bn in the same period in 2019 down to $6.57bn.

Just last year, the group floated on the Saudi stock exchange and was seen to be the world’s most valuable company after posting strong profits. Since the dent to demand since the Coronavirus, Saudi Aramco has been taken over by Apple.

The group’s chief executive, Amin Nasser, said in a statement: “Despite COVID-19 bringing the world to a standstill, Aramco kept going. We have proven our resilience and reliability, setting a record in our business operations, while at the same time ensuring the health and safety of our people.”

“Strong headwinds from reduced demand and lower oil prices are reflected in our second-quarter results. Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce, and unrivalled financial and operational strength. This helped us deliver on our plan to maintain a second-quarter dividend of $18.75 billion to be paid in the third quarter.”

“We are determined to emerge from the pandemic stronger and will continue making progress on our long-term strategic journey, through ongoing investments in our business – which has one of the lowest upstream carbon footprints in the world,” he added.

The price of oil has tumbled down to $16 a barrel in April 2020, down from previous highs of over $45 a barrel.

Shares in Saudi Aramco (TADAWUL: 2222) are trading +0.15% at 33.10 (0851GMT).


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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.