The Saudi Arabian Oil Company (Saudi Aramco) has announced its full-year 2019 financial results, delivering strong profits and dividends despite a lower price environment and challenging margins in refining and chemicals.
Net income was US$88.2 billion for the full-year 2019, compared to US$111.1 billion in 2018. The decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins, and a US$1.6 billion impairment associated with Sadara Chemical Company.
In its downstream business the company continued to enhance its portfolio, targeting optimised operations and capturing value from strategic integration across the hydrocarbon value chain.
Saudi Aramco entered into a share purchase agreement last year to acquire the Public Investment Fund’s 70% equity interest in SABIC, one of the world’s largest chemicals companies, for US$69.1 billion. The acquisition aims to accelerate Saudi Aramco’s downstream strategy and help capture rising demand for petrochemical products over the longer term. Upon closing of the SABIC transaction, anticipated in the first half of 2020, the company is expected to become one of the world’s largest petrochemical producers by production capacity.
Amin H. Nasser, Saudi Aramco’s President and CEO, commented: “2019 was an exceptional year for Saudi Aramco. Through a variety of circumstances – some planned and some not – the world was offered unprecedented insight into Saudi Aramco’s agility and resilience.”
“Our unique scale, low costs, and resilience came together to deliver both growth and world-leading returns, while also maintaining our position as one of the world’s most reliable energy companies.”
Read all the highlights of the results here.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/16032020/saudi-aramco-releases-2019-financial-results/