The Saudi Arabian Oil Company, better known as Saudi Aramco, on Tuesday, reported earnings for its first quarter this year.
Earnings Drop YoY
Aramco said it made $16.7 billion in net income in Q1, down nearly 25% from the $22.2 billion posted in the similar quarter last year.
The state-owned oil company posted earnings per share of 8 cents, down from 11 cents in 2019 Q1. Earnings before interests and taxes came at $34.2 billion, down 22.8% year-on-year from $44.3 billion.
Aramco declared a dividend of $18.75 billion for the quarter, including a dividend of 7 cents per share already paid.
The first quarter this year proved difficult for oil in the face of a sudden drop in demand due to the novel coronavirus (COVID-19) pandemic. The Organization of Petroleum Exporting Countries and allies agreed to some production cuts after tough negotiations, but not before the oil market crashed.
Aramco Has 'Flexibility' To Survive The Pandemic, CEO Says
"Our financial performance in the first three months of 2020 was impacted by the ongoing effects of the COVID-19 global pandemic as well as lower oil prices," Aramco CEO Amin Nasser said in a statement.
He added that the company's results were nevertheless "exceptionally strong" due to its "prudent balance sheet management and low-cost structure."
"Going forward, we retain significant flexibility to further adjust expenditures in response to the disruption caused by the coronavirus on both economic activity and energy demand," Nasser added.
Aramco shares traded 0.65% higher at $31.1 in Riyadh at press time on Tuesday.
The United States West Texas Intermediate crude oil futures for June were up nearly 2.4% at $24.71. Brent Oil futures for July were up 1% at $29.93.