The oil giant cited lower crude oil prices and production for the decline in profit/Bloombergby Kudakwashe Muzoriwa
Saudi Aramco has recorded a net income of $88.2 billion for the full-year 2019, a 21 per cent decrease compared to $111.1 billion in 2018.
The oil giant cited lower crude oil prices and production for the decline in profit.
Saudi Aramco stated that the decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins, and a $1.6 billion impairment associated with Sadara Chemical Company.
An oil-price war between Saudi Arabia and Russia threatens more pain for the oil producer as producing nations prepare to boost supplies at discounted prices to markets already reeling from weak demand. Crude oil has lost half of its value since the beginning of the year.
Prices fell last year even as Saudi Arabia trimmed output as part of the joint effort between OPEC and producers like Russia to rein in production. Additionally, drone on two of Aramco’s biggest oil facilities in September 2019 temporarily slashed production by more than half but did not cause a big surge in prices.
Bloomberg reported that oil averaged $64.12 a barrel in 2019 compared with $71.67 the previous year. Saudi production slipped to an average of 9.83 million barrels a day from 10.65 million in 2018.