The company revealed in its earnings results published on Sunday, that the net profit of the Saudi Arabian Oil Company for the second quarter of the fiscal year 2020 fell by 73.4% to $ 6.6 billion. Saudi Aramco’s net income in the first half of the fiscal year decreased by 50.5% to $ 23.2 billion in the six-month period ended June 30.
The company’s capital expenditures for the second quarter and first half of the fiscal year 2020 amounted to $ 6.2 billion and $ 13.6 billion, respectively, as the oil group revealed its plan to keep its capital expenditures in a range between $ 25 billion and $ 30 billion for the year 2020.
Despite the decline in Aramco’s net income, the net income in the second quarter exceeds the net income of the five major international oil companies combined. Saudi Aramco also announced that it achieved the highest historical production of crude oil in one day by about 12.1 million barrels, on the second of April. / April 2020.
Saudi Arabia generates most of its revenue from crude oil, and its budget deficit is set to exceed 12% of GDP in 2020, according to the International Monetary Fund. This will be the widest since 2016, adding pressure on Aramco to maintain its dividend. Saudi Aramco said, in a statement on Tadawul, that it had decided to distribute cash dividends of 70.32 billion Saudi riyals ($ 18.75 billion) to shareholders for the second quarter of the year 2020. The company added that the number of shares due for profits amounted to 199.88 billion shares, to reach a share A share of dividends is 0.3518 riyals.
