The Bubba Trading Show's Todd 'Bubba' Horowitz shares his stock market picks.
DUBAI - State oil giant Saudi Aramco’s profit plunged 73% in the second quarter of the year, as a slump in energy demand and prices due to the coronavirus crisis hit sales at the world’s biggest oil exporter.
Continue Reading Below
But the company stuck with plans to pay $75 billion in dividends this year and CEO Amin Nasser said global oil demand was recovering.
APPLE LEAPFROGS ARAMCO, NOW WORLD'S BIGGEST COMPANY
All major oil companies have taken a hit in the second quarter as lockdowns to contain the coronavirus limited travel, which reduced oil consumption and sent prices tumbling to levels not seen in nearly two decades.
Aramco, which listed in Riyadh last year in a record $29.4 billion flotation, said the rapid spread of COVID-19 globally had significantly reduced demand for crude oil, natural gas and petroleum products.
In this Dec. 11, 2019, file photo, Saudi Arabia's state-owned oil company Aramco and stock market officials celebrate during the official ceremony marking the debut of Aramco's initial public offering on the Riyadh's stock market, in Riyadh, Saudi Ar
Nasser told reporters he had seen a partial recovery in the energy market and a pick up in demand as economies gradually open after the easing of coronavirus lockdowns.
“Look at China, their gasoline and diesel demand is almost at pre-COVID 19 levels. We are seeing that Asia is picking up and other markets (too),” he told reporters after announcing the company’s quarterly results.
“As countries ease the lockdown, we expect the demand to increase.”
Nasser said Aramco was committed to its 2020 dividend.
BP CUTS DIVIDEND AS CORONAVIRUS SPEEDS UP PUSH INTO GREENER ENERGY
“We intend to pay the $75 billion, subject to board approval and market conditions,” he said.
The group’s dividends play a critical role in helping the Saudi government to manage its fiscal deficit.
Aramco reported a 73.4% fall in second-quarter net profit, a steeper drop than analysts had forecast, and said it expected capital expenditure for 2020 to be at the lower end of a $25 billion to $30 billion range.
Net profit fell to 24.6 billion riyals ($6.57 billion) for the quarter to June 30 from 92.6 billion riyals a year earlier.
Analysts had expected net profit of 31.3 billion riyals, according to the mean estimate from three analysts, provided by Refinitiv.
In this Thursday, Dec. 12, 2019, file photo, a trader talks to others in front of a screen displaying Saudi stock market values at the Arab National Bank in Riyadh, Saudi Arabia. (AP Photo/Amr Nabil, File)
“Aramco figures are healthy compared to other global peers,” Mazen al-Sudairi, head of research at Al Rajhi Capital, said. “This was the worst quarter in the modern history of oil industry, and surviving it with healthy figures points to a very positive outlook.”
Aramco shares were up about 0.4% in early trade. The group is currently the world’s second most valuable publicly traded company after Apple.
Aramco said it will pay a dividend of $18.75 billion for the second quarter of this year, in line with plans for a $75 billion dividend for 2020.
BP earlier this month cut its dividend for the first time in a decade after a record second-quarter loss, while Royal Dutch Shell in April cut its dividend for the first time since World War Two.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Aramco’s free cash flow stood at $6.1 billion in the second quarter and $21.1 billion for the first half of 2020, respectively, compared with $20.6 billion and $38.0 billion for the same periods in 2019.
Aramco’s gearing ratio was 20.1% at the end of June, mainly reflecting the deferred consideration for the acquisition of Saudi Basic Industries Corp and the consolidation of SABIC’s net debt on to Aramco’s balance sheet.($1 = 3.7501 riyals)
CLICK HERE TO READ MORE ON FOX BUSINESS
"oil" - Google News
August 09, 2020 at 06:12PM
https://ift.tt/3ae7eKG
Saudi Aramco's profit plunges, sees signs of oil market recovery - Fox Business
"oil" - Google News
https://ift.tt/2PqPpxF
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Saudi Aramco's profit plunges, sees signs of oil market recovery - Fox Business"
Post a Comment