Saudi Aramco announced its full year 2019 results that saw its net profit drop by 21 per cent and see the oil giant cut its 2020 spending to $25-$30 billion, compared to $32.8 billion in 2019.
The Saudi Arabian oil firm reported that its net income was $88.2 billion for the full-year 2019, compared to $111.1 billion in 2018.
In a statement Aramco said: "The decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins, and a $1.6 billion impairment associated with Sadara Chemical Company."
Saudi Aramco also announced that it was going to cut spending this year. Its capital expenditure last year was $32.8 billion, compared to $35.1 billion in 2018.
"The Company expects capital spending for 2020 to be between $25 billion and $30 billion in light of current market conditions and recent commodity price volatility. Capital expenditure for 2021 and beyond is currently under review," Aramco said.
Aramco gave an update on the development of the Jafurah unconventional gas field in the Eastern Province. Aramco said that the field will be gradually developed in phase and the start of production of the first phase is expected in early 2024.
Saudi Aramco President & CEO Amin H. Nasser, said: “The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape. This is central to Saudi Aramco’s strategy and we will ensure that we maintain the strength of our operations and our finances. In fact, we have already taken steps to rationalize our planned 2020 capital spending.”