Aramco’s 2Q Earnings Plunge 73% as the Covid-19 Outbreak Causes Lower Oil Demand

Saudi Aramco‘s 2Q20 earnings dropped by 73% to 24.6 billion riyals ($6.56 billion) as a result of lower energy demand and prices due to the coronavirus outbreak.

 

The world biggest oil exporter announced a drop of 73% in profit for the second quarter of 2020 from 92.6 billion riyals ($24.6 billion) in 2Q19 to 24.6 billion riyals as worldwide lockdown in at the end of first quarter throughout the second quarter limited travel demand and other activities, led to lower oil consumption and prices.

 

However, Aramco’s CEO Amin Nasser said that he had seen a partial recovery in the energy market and a pick up in demand upon the gradual reopening of the economy after the lockdowns while pointing out that China, as one of the first country to recover from the pandemic, has been recording a demand for gasoline and diesel at almost pre-Covid levels.

But the company stuck with plans to pay $75 billion in dividends this year and CEO Amin Nasser said global oil demand was recovering.

Nevertheless, Nasser affirmed that the company is committed to paying a dividend at the total amount of $75 billion.