The Saudi state oil giant, Saudi Aramco, announced today, Tuesday, a 25% decline in net profit in the first quarter of the year, as it was affected by a drop in crude oil prices at a time when the Corona virus severely reduced demand, and the company indicated that the Covid-19 crisis will affect Demand and revenue for the current year.

Brent crude prices fell 65% in the first quarter, before OPEC Plus producers agreed to cut supplies to a record size of 9.7 million barrels per day, starting in May, to help raise prices and curb excess supply.

Net profit fell to 62.48 billion riyals (16.64 billion dollars) in the quarter ended March 31, compared to 83.29 billion riyals a year ago (at 22.2 billion dollars).

Analysts had expected a profit of $ 17.8 billion, according to the average estimates from the Egyptian financial group Hermes, Al-Rajhi Capital, Saudi Arabia, and Arqaam Capital, based in Dubai.

Aramco said the results reflected "low crude oil prices, as well as lower refining and chemical profit margins, and inventory revaluation losses."

"Looking at the remaining months of 2020, we expect the Corona pandemic to affect global demand for energy and oil prices, which in turn will reflect on the company's revenues," the company’s CEO, Amin Al Nasser, said in a statement.

Aramco maintained its oil production at around 9.7 million barrels per day during the first three months of the year under the OPEC Plus agreement to cut supplies, before the company pumped oil to the maximum in April, following the collapse of talks on supply cuts in early March.

And last year, Aramco reported a 20.6% drop in profits to $ 88.2 billion, due to lower crude prices and production levels.

The giant national oil company plans to acquire a stake in Saudi Arabia's SABIC petrochemical industry for about $ 70 billion, but sources told Reuters this week that the deal was likely to be restructured as oil prices fell due to the Corona virus.

Aramco said earlier today that its planned acquisition of a 70% stake in SABIC was moving towards completion in the second quarter.