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Saudi Aramco Net Profit Decreased Four Times In Q2 2020 Versus The Same Period Of 2019

Saudi Aramco Net Profit Decreased Four Times In Q2 2020 Versus The Same Period Of 2019

The net profit of the state-owned company of Saudi Arabia-Saudi Aramco in the first half of the year amounted to $23.2 billion, falling by half compared to the same period in 2019, according to the company's message.

Profit in the second quarter was $6.6 billion, which is almost four times lower compared to the same period last year.

Free cash flow in the first half of the year decreased to $21.1 billion compared to $38 billion in the first half of 2019. At the end of the second quarter, this figure was $6.1 billion compared to $20.6 billion in the second quarter of 2019.

In the second quarter, Saudi Aramco paid a first-quarter dividend of $18.75 billion. The company announced its intention to pay $18.75 billion for the second quarter of 2020, compared with $13.4 billion in the second quarter of 2019.

Capital expenditures in the first half of the year totaled $13.6 billion, and in the second quarter - $6.2 billion. "Aramco continues its program of optimizing and improving the efficiency of capital expenditures and expects that by the end of 2020, its size will be in the range of $25-30 billion," the press release notes.

Hydrocarbon production in the second quarter was 12.7 million BPD.

"Strong obstacles caused by reduced demand and lower oil prices have affected our results for the second quarter. ( ... )," Amin Nasser, head of Saudi Aramco, said in a statement. However, he noted that due to low production costs, a flexible workforce, and a unique scale, the company managed to make a "solid profit."

According to Nasser, the company will continue to adhere to its long-term strategy of diversification and growth.