Covid-19: Saudi oil giant Aramco loses 73% in second quarter
A Saudi Aramco oil refinery in Shaybah in May 2018. REUTERS / Ahmed Jadallah
Text by: RFI Follow
Saudi oil giant Saudi Aramco sees profits plunge 73.4% in the second quarter compared to the same period last year, according to the results released on Sunday, August 9 by the group, ahead of a meeting with investors this Monday. This is particularly the consequence of a historic collapse in prices last spring caused by the drop in global demand linked to the health crisis.
2020 represents a difficult year for black gold, with prices last spring pushed below zero dollars by the collapse of global demand. Since then, producers have agreed to reduce production in order to restore prices.
But there are many oil companies that are suffering. Leader of the sector, Saudi Aramco is also suffering as its profits drop to 23 billion dollars in the first half, half less than last year.
A few days ago, the group lost its place as the first listed company in the world to the benefit of the American Apple. “ But the worst is probably behind us, ” believes CEO Amin Nasser, for whom demand for oil will remain strong in the future.
This first press conference since its very remarkable IPO last year also allows Aramco to reassure by showing itself as a transparent group on its performance. This lack of transparency has long been criticized.
Aramco also shows its difference compared to other majors such as BP and Royal Dutch Shell. Dividends paid to shareholders will not be revised downwards. Eighteen billion dollars are expected to be paid for the second quarter account. But like the others, investment spending will be revised downwards in 2020.
► (Re) listen: Saudi Aramco's action drops because of the coronavirus
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