Saudi Aramco half-year profits plunge 50% from virus impact
Dubai: Saudi Aramco's net income plunged by 50% in the first half of the year, according to figures published on Sunday, offering a revealing glimpse into the impact of the coronavirus pandemic on one of the world's biggest oil producers.
Profits for the first six months of the year plunged to 23.2 billion, half of last year's 46.9 billion for the same time period.
The results were announced as Aramco's second quarter earnings dipped to 6.6 billion compared to 24.7 billion during the same time last year, reflecting a staggering 73% drop.
The majority state-owned company's financial health is crucial to Saudi Arabia's stability. Despite massive efforts by Saudi Crown Prince Mohammed bin Salman to diversify the economy, Saudi Arabia still depends heavily on oil exports to fuel government spending.
The price of Brent crude hovers just under 45 a barrel, significantly less than before the pandemic but up from a low of around 21 a barrel in April.
Aramco CEO Amin Nasser acknowledged the company's finances were impacted by strong headwinds from reduced demand and lower oil prices" sparked by the pandemic, which halted flights around the world and plunged economies into recession, including Saudi Arabia's.
The company said it will uphold its commitment to pay out dividends of 18.75 billion for the second quarter as part of its promise to pay 75 billion in annual dividends.
Nasser described Aramco's half-year earnings as solid and credited the company's low production costs and operational strength, which helped it to maintain its promised dividend payments.
Aramco was knocked out of it's top spot as the world's most valuable listed company by Apple in recent days.
It's stock price gained a little on Sunday, trading at around 33 riyals ( 8.80) a share. At its highest, Aramco traded above 10 a share in December and at it lowest slipped to 7.20 a share in March.
Looking ahead, Nasser said the energy market is seeing a partial recovery as countries around the world ease restrictions and reboot their economies.
We are determined to emerge from the pandemic stronger and will continue making progress on our long-term strategic journey, through ongoing investments in our business, Nasser said.
Even before the half-year results were announced, it was clear Aramco's half-year earnings would take a hit with the company's first quarter profits down 25%.
Aramco, which floated a sliver of its shares on the local Saudi stock market last year, had long kept its financial details a closely-held secret until the company began preparations for its market debut.
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Pakistan reports two more polio cases; Total tally now 52
ISLAMABAD: At least two more cases of poliovirus were reported in Pakistan, taking the number of infections to 52 so far this year, a report said on Friday.
“The Regional Reference Laboratory for Polio Eradication at the National Institute of Health has confirmed the detection of two more wild poliovirus type 1 (WPV1) cases in Pakistan," an official statement said.
The fresh infections — a boy and a girl — were reported from the Dera Ismail Khan district of Khyber-Pakhtunkhwa province.
“Genetic sequencing of the samples collected from the children is underway," the statement read. Dera Ismail Khan, one of the seven polio-endemic districts of southern Khyber Pakhtunkhwa province, has reported five polio cases so far this year.
Of the 52 cases in the country this year, 24 are from Balochistan, 13 from Sindh, 13 from Khyber Pakhtunkhwa, and one each from Punjab and Islamabad.
There is no cure for polio. Only multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five can keep them protected.
