Profit tumbled at Saudi Aramco, the world's biggest oil company
Saudi Aramco had a rough 2020, just like every other oil company. But Aramco isn't any ordinary oil company -- it's the world's biggest, and the pandemic's toll on its business had a decidedly adverse effect on the Saudi-owned business.
Posted — UpdatedThe company announced Sunday that its net profit fell a whopping 44.4% to $49 billion in 2020. Dealt that significant blow, Saudi Aramco committed to spend less this year than it had anticipated: Aramco said it planned to spend about $35 billion in 2021 on capital expenditures, down sharply from its previous estimate of $40 billion to $45 billion.
Nonetheless, the oil company was upbeat about the future: It maintained its $75 billion dividend for the year and the company thinks it will return to pre-pandemic oil production levels by the end of 2021.
The profit drop reflects the coronavirus pandemic's effect on global energy markets.
"As the enormous impact of Covid-19 was felt throughout the global economy, we intensified our strong emphasis on capital and operational efficiencies," Aramco president and CEO Amin Nasser said.
The earnings report comes at a time when Saudi Aramco refineries have been facing drone attacks from Yemen's Iran-backed Houthi rebels.
This story is developing and will be updated.
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