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Saudi Aramco's production facility in the Persian Gulf
Photo: --- / picture alliance / dpa / Saudi Aramco
Lower oil prices and lower demand during the corona pandemic have hit Saudi Arabia's state-owned oil company Saudi Aramco in 2020.
The net profit fell according to the group compared to the previous year by more than 44 percent to the equivalent of 49 billion dollars.
Last year, the price of oil had fallen below $ 20 per barrel when people around the world stopped traveling and used less kerosene, gasoline and diesel.
Recently, however, the price ($ 64 on Sunday) and demand have risen again.
Vaccinations against the corona virus and easing in many parts of the world give the industry hope for better business.
"We are pleased that there are signs of recovery," said Saudi Aramco boss Amin Nasser.
"We expect this to continue as governments around the world reopen the markets." In particular, he referred to Asia, where the economy is already doing better.
Full dividends should flow
Despite the decline in profits, Saudi Aramco plans to pay out the promised dividend totaling $ 75 billion.
Other oil companies are cutting their distributions in light of the crisis.
Most of the money goes to the Saudi Arabian state, which holds more than 98 percent of the company and whose budget is heavily dependent on the income.
Last year an oil price of $ 76 per barrel would have been required for a balanced state budget.
The country wants to reduce its dependence on oil revenues, but is making slow progress.
Saudi Aramco has borrowed on a large scale and saved on investments.
They fell by almost six billion dollars to 27 billion dollars in 2020.
This year they are expected to rise to 35 billion dollars, but market observers had expected significantly more.
In 2019, Saudi Aramco's profit was $ 88.2 billion, compared with $ 111.1 billion in 2018.
When it went public just under a year and a half ago, Saudi Aramco was the world's most valuable publicly traded company, valued at $ 1.7 trillion.
It has since lost the title to Apple.
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nis / AP / Reuters
