Aramco’s 2019 profit falls 21 per cent, plans to adjust capital spending

The Saudi Arabian Oil Company is basically a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia. It is known to be one of the largest companies in the world by revenue, and also the most profitable company in the world.

This mega-giant company on Sunday posted a 21 percent decline in 2019 net profit due to a serious drop in oil prices and production and said it plans to “rationalize” capital spending in the wake of the coronavirus outbreak.

This was the Aramco’s first announcement after it listed in December last year in a record $29.4 billion initial public offerings that valued the company at $1.7 trillion. Like the crashing of oil prices after the collapse of an output deal between Opec and Non- Opec members led to a big oil price war between Riyadh and Moscow.

John Mccain said that “whoever controls oil controls much more than oil.” which I believe is indeed true. Oil is a much too important commodity to be left in hands of a few and if it happens it’s going to have its own side effects.

Aramco expects capital spending for 2020 to be between $25 billion and $30 billion in light of the current market scenario and recent commodity price volatility.” Amarco said in a statement.

Amarco is 98 per cent owned by the Gulf kingdom, reported a net profit of $88.3 billion in 2019, down from $111.1 in 2018. According to analysts Aramco to post a net profit of 346.6 billion riyals in 2019, according to an estimate of 15 analysts polled by Refinitiv Amarco Saudi Amarco operates the largest single hydrocarbon network, the Master Gas System.

For More News Follow Us on – Facebook – Twitter and on our Website