A worker at an oil processing facility of Saudi Aramco, a Saudi state-owned oil and gas company, at the Abqaiq oil field.
Stanislav Krasilnikov | TASS | Getty Images
Oil giant Saudi Aramco reported a 44% drop in 2020 results, but maintained its $ 75 billion dividend payout, with CEO Amin Nasser describing the past 12 months as one of the “most challenging” years “in recent history.
Saudi Arabia, the oil company of Saudi Arabia, reported a net income of $ 49 billion in 2020, compared to $ 88.19 billion in 2019. The result was slightly lower than analysts’ expectations of $ 48.1 billion, but is still the highest of any public company worldwide.
“In one of the most challenging years in recent history, Aramco has demonstrated its unique value proposition through its significant financial and operational skills,” Saudi Aramco CEO Amin Nasser said in a company statement on Sunday.
Aramco said revenue is impacted by lower crude oil prices and volumes sold, and margins of refining and chemicals.
The firm also said it expects to cut capital spending in the coming year, lowering its spending forecast to $ 35 billion from the previous level to $ 40 billion to $ 45 billion.
Free cash flow fell nearly 40% to $ 49 billion, well below the level of its highly anticipated dividend. Aramco has also announced a $ 75 billion payout for 2020, despite concerns it will take on additional debt to sustain it.
“Looking ahead, our long-term strategy to optimize our oil and gas portfolio is on track, and as the macro environment improves, we see an increase in demand in Asia and also positive signs elsewhere,” he added.
Shares in the top Western oil and gas companies, including Royal Dutch Shell and BP, fell to lows in 2020 as the coronavirus pandemic devastated the global economy and caused a historic collapse in oil prices. Exxon Mobil, the largest US energy company, showed its first annual loss.