Saudi Aramco’s first-half net income falls 12% to $47 billion

  • 12/08/2019
Saudi Aramco’s first-half net income falls 12% to $47 billion

Being the world’s leading oil producer, Saudi Aramco said net profit was $ 46.9 billion in the first half of the year, compared with $ 53.02 billion a year ago.

On the other hand, Apple Inc, the most profitable listed firm in the world, gained $ 31.5 billion in the first six months of the fiscal year.

According to Aramko, overall incomes, involving other incomes connected with sales, amounted to $ 163.88 billion in the first half of this year compared to $ 167.68 billion a year earlier due to decrease oil costs and decreased manufacturing.

In its gains report, Aramco explained a little bit the decrease in net profit by a 4 percent decrease in the average selling price of crude oil compared to the exact period in 2018 from $ 69 to $ 66 per barrel.

Aramco President and Chief Executive Officer Amin Nasser said the firm kept pursuing its “downstream growth strategy” with the help of purchase in both domestic and global markets.

“These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations,” Nasser said.

Indian Reliance Industries reported that it will sell a 20% stake in its oil and gas business to Saudi Aramco, which is one of India’s biggest foreign investments. Reliance representative Mukesh Ambani said the agreement valued the business at $ 75 billion, involving debt.

Aramco's report also demonstrated that gains before interest and taxes (EBIT) for the reporting period amounted to $ 92.5 billion compared to $ 101.3 billion in the first half of 2018.

According to the report, the firm raised dividend payments from $ 32 billion in the middle of last year to $ 46.4 billion, thanks to special dividends of $ 20 billion paid earlier this year as a result of “exceptionally high financial results” in 2018.

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