DHAHRAN, May 12, 2020
- First quarter net income: $16.7 billion
- First quarter free cash flow*: $15.0 billion
- Gearing* ratio of -4.9% reflects further strengthening of balance sheet
- Dividends of $13.4 billion paid in the first quarter, in respect of Q4 2019
- Dividends of $18.75 billion to be paid in the second quarter, for Q1 2020
- Low upstream costs and sustaining capital provide significant flexibility
The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced its financial results for the first quarter of 2020, demonstrating financial and operational strength despite a challenging macro environment and lower energy demand caused by the COVID-19 pandemic.
Commenting on the results, Aramco President & CEO Amin H. Nasser, said:
“The COVID-19 crisis is unlike anything the world has experienced in recent history and we are adapting to a highly complex and rapidly changing business environment. Aramco has demonstrated resilience during economic cycles and has an unparalleled position due to a strong balance sheet and low-cost structure.
“We have delivered solid earnings with robust free cash flow, despite weak energy demand and low oil prices. We remain committed to the safety of our people while delivering on our long-term value creation strategy for all of our shareholders.
“During the first quarter, we took steps to further optimize our planned 2020 capital spending and identified opportunities to improve operational productivity.
“We retain significant flexibility to adjust expenditures and have considerable experience in managing the business through times of adversity. This resilience will enable us to continue delivering on our commitments to our shareholders.
“Looking ahead to the remainder of 2020, we expect the impact of the COVID-19 pandemic on global energy demand and oil prices to weigh on our earnings. We continue to reinforce the business during this period by reducing our capex and driving operational excellence. Longer term we remain confident that demand for energy will rebound as global economies recover.”
