MILANO – The $ 75 billion dividend of the Saudi oil giant Aramco survives a year marked by the coronavirus crisis that has generated a collapse in oil prices, only recently on the rise due to the prospects of economic recovery after – in the darkest moment of the lockdown – they even came in negative. The check (which, to be clear, is worth as much as the capitalizations of Intesa and Unicredit put together) remains standing despite the collapse of net profit by 44% and confirms its lifeblood for the Saudi government’s balance sheet.
The company reported a profit of 184 billion ryals (about 49 billion) and cash flows of about 49 billion dollars, thus forcing it to increase debt for the payment of coupons.
The note from the oil company recalls that last year the profits were 88.2 billion dollars and the CEO Amin Nasser said that 2020 was certainly “one of the most difficult years in recent history”. “Revenues were affected by the reduction in oil prices and volumes sold, as well as the reduction in margins on refining and chemicals,” the company explained.
Aramco, considered a money mine for Saudi Arabia, has experienced two consecutive drops in profits since it began reporting results in 2019. Enough to put pressure on public finances as Riyadh pursues ambitious multi-billion dollar projects to diversify its dependent economy from oil. However, Aramco believes it has “demonstrated strong resilience” in light of the losses of many of its competitors and expects oil demand to increase in Asia and other parts of the world.
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