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Oil giant Saudi Aramco sees 2020 profits falling to $ 49 billion

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DUBAI, United Arab Emirates (AP) – Saudi Arabia-sponsored oil giant Aram Co. announced on Sunday that its profits had almost halved to $ 49 billion in 2020, a sharp drop as the coronavirus epidemic swept through. is the world energy markets.

The Saudi Arabian Oil Company released its financial results a year after the epidemic pushed oil prices to record lows as people stopped moving around the world to prevent the virus from spreading. But in recent weeks, prices have risen as movement restrictions eased, trade has increased, and more people are being vaccinated against COVID-19. Still, analysts warn that the peak of demand is still far away.

Despite the sharp drop in oil revenues, Aramko said he would remain committed to paying $ 18.75 billion in quarterly dividends and paying $ 75 billion a year in shares due to the company’s commitments to shareholders before the initial public offering. Almost all of the dividend money goes to the government of Saudi Arabia, which owns more than 98% of the company.

Public figures, who have been mandatory since then, as the state-owned company listed its value fragment on the Riyadh Tadavul Stock Exchange in 2019, provide a valuable insight into the health of the region’s largest economy. Despite Saudi Arabia’s Crown Prince Mohammed bin Salman seeking to diversify its economy away from oil, the kingdom remains heavily dependent on oil exports to boost public spending.

The profit of Saudi Aramco by $ 49 billion in 2020 decreased from $ 88.2 in 2019 to $ 111.1 billion in 2018. Aramko still remains one of the most valuable companies in the world.

The company produced 9.2 million barrels of crude oil per day during the year, according to its annual results. Capital expenditures fell to $ 27 billion in 2020 from $ 32.8 billion a year earlier. This year, Aramco expects to spend $ 35 billion, which is significantly lower than the previous estimate of $ 40- $ 45 billion.

In recent months, oil prices have returned sharply since April 2020, when the price of oil at the international base of Brent fell below $ 20 per barrel. Last month, the price of Brent for the first time in a year exceeded $ 60 a barrel վեց on Sunday it sold for $ 64 per barrel.

The price increase came at a time when Saudi Arabia seems determined to curb output, support raw markets, and even as demand grows, countries are lifting blockades and speeding up vaccination campaigns.

Earlier this month, the kingdom announced it would extend voluntary production cuts to 1 million barrels a day, at least until April. Most of the OPEC oil cartel allies have also cut production, in contrast to March last year, when a war between Saudi Arabia and Russia forced the two oil giants to stockpile crude as demand fell. Saudi officials warn that the global economic recovery could still be hampered by new coronavirus restrictions and rapidly spreading versions of the virus.

Until December 2019, when Aramco listed 1.5% of its shares on the stock exchange, the firm belonged directly to the ruling Al Saud family, there was no need to publish results. Initially, Aramko traded at 32 riyals ($ 8.53), becoming the world’s most valuable listing company with a market capitalization of $ 1.7 trillion. Since then, however, Aramko has lost its stock market to Apple due to a drop in its value. It traded at 35 riyals ($ 9.30) per share on Sunday.

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