Saudi Aramco, unarguably the world’s largest oil company, has reported a 73% profit in Q2 of 2020 and has promised to keep its plans to pay out $75 billion in annual dividends, Bloomberg News reports.
This is coming after Aramco reported a plunge in profits for Q2 2020 of 24.6 billion riyals compared to 92.6 billion riyals recorded in the same corresponding year.
Aramco will, however, pay a Q2 2020 dividend of $18.75 billion, most of it to the government of Saudi Arabia, the company’s major shareholder.
The plunge in profit was due mainly to ‘the impact of lower crude oil prices and declining refining and chemical margins,’ Aramco said in the statement to the Saudi stock exchange.
“Strong headwinds from reduced demand and lower oil prices are reflected in our second-quarter results. We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies,” said Chief Executive Officer, Amin Nasser.
Saudi Aramco is the national energy company of Saudi Arabia, providing five grades of crude oil and natural gas liquids.
It also produces refined energy products that include liquefied petroleum gas, ethanol, naphtha, and other products.
It exports about 75% of its crude oil to foreign markets, most often with its oil tankers. Saudi Aramco has access to crude oil reserves of about 260 billion barrels, the largest in the world.