Saudi Aramco, the largest national oil company in the world, announced today, Sunday, that its profits decreased during the second half of this year by 73% to 24.6 billion riyals ($ 6.6 billion), compared to profits of 92.6 billion riyals during the same period of the previous year.
Profits decreased to 87.1 billion riyals by the end of the first half of 2020, compared to an estimated 175.9 billion achieved during the same period in 2019.
The Aramco statement said that the reason for the decline in profits during the current period compared to the same period of the previous year is due to "lower prices, losses in stock revaluation, in addition to the decline in profit margins in the refining and chemicals business on net income in 2020."
The company's president and chief executive officer, Amin Al-Nasser, said, "The unfavorable conditions resulting from the decline in demand and the drop in crude oil prices were reflected in our results for the second quarter."
Oil prices retreated in recent months to record levels before they recovered, due to the spread of the new Corona virus and associated closures.
The Kingdom recorded more than 287,000 cases of this emerging virus, including more than 3,100 deaths, which is the highest rate among the Gulf countries.
International flights have been suspended for months in Saudi Arabia, which is facing great economic hardship. The authorities suspended Umrah and reduced the number of pilgrims from 2.5 million to a few thousand in Makkah.
Last May, Aramco announced that its net profit in the first quarter of the year decreased by 25% due to the drop in crude prices.
Last year, the company announced a 20.6% decline in its annual profits to $ 88.2 billion due to lower crude prices and production levels.