Saudi Press: Saudi Arabia is Keen to Achieves Aspirations of GCC Countries and Their Peoples    Plastics in soil threaten food security, health and environment: FAO    Guterres urges greater support for peacekeeping amid mounting threats    Bachelet describes 'disastrous' human rights situation across Occupied Palestinian Territory    Conflict, COVID-19 and climate change have created a perfect storm of challenges: Grandi    Countries with regulations against industrial trans fats tripled in a year    The Ministry of Defense: Interception, Destruction of a Hostile Air Target Towards The Western Region    GACA's Al-Duailej meets Director General of ACI for the Asia Pacific region    Aramco and Larsen & Toubro to collaborate on manufacturing sector development    Aramco announces $15.5 billion landmark gas pipeline deal with global consortium led by BlackRock    Bilateral ACE exercise maneuvers between RSADF and US Air Force begins    Lt. Gen. Al-Ruwaili receives Iraq's Lt. Gen. Salih    Dr. Al-Awwad, Strong discuss issues in field of human rights    Shoura speaker receives head of US Mission to Saudi Arabia    Al-Attiyah, Aalvarez go head-to-head for FIA World Cup glory in Saudi desert    SABIC signs MoU to study new petrochemical project in Oman    New Zealander wins Tuwaiq International Sculpture 2021 top prize    MDLBEAST announces hottest line up at SOUNDSTORM 21    David Gulpilil: Profound legacy of a trailblazing Aboriginal actor    Saudi Embassy in Paris clarifies that what was reported in media about arrest of Saudi citizen suspected in the case of citizen Jamal Khashoggi is incorrect, calls for his immediate release    Winners of "Tuwaiq International Sculpture Symposium 2021" Announced    Saudi Stock Exchange Main Index Ends Trading Higher at 11,108.20 Points    UAE Government Announces Four and Half Day Working Week, Weekend on Saturday, Sunday as of 01 January, 2022    S.Korea Records 4,954 New Cases of COVID-19    Saudi and Omani Companies Sign 13 MoUs Related to Joint Work in Promising Economic Sectors    Arab Parliament Condemns Terrorist Houthi Militia's Targeting of the Cities of Riyadh and Khamis Mushait with Ballistic Missiles    Saudi Export Development Authority Organizes Saudi Trade Mission to USA    Saudi Stock Exchange Main Index Ends Trading Lower at 11021 Points    Saudi and GCC entrants set to dominate motorcycle and quad battles in Hail    Saline Water Conversion Corporation Shares its Initiatives in Realizing Saudi Green Goals in London Forum    World Directs Attention to Final Round of FIA Cross Country Rally World Cup in Hail    UAE condemns terrorist Houthi militia attempt to target Saudi Arabia with drones    Lewis Hamilton wins thrilling Saudi Arabian Grand Prix    Crown Prince attends inaugural Saudi Arabian Grand Prix    Deputy Governor of Hail: Hail International Rally is a practical translation of the wise leadership's support    Hail International Rally to Kick off Tomorrow    Briton Lewis Hamilton Dominates 1st Session of Testing Before Official Launch of Formula 1 STC Saudi Arabian Grand Prix 2021 Sunday    BIENALSUR Exhibition Arrives in Jeddah at Historic Site of Qasr Khuzam    Saudi Hind Al-Showaier Elected Regional Director of World Federation of the Deaf    Saudi Film Commission launch its strategy to develop film and cinema sector    Bollywood superstar Salman Khan to dazzle Riyadh Season on Dec. 10    Bollywood star's 'India got freedom in 2014' remark stirs controversy    23 Saudi women obtain favorable verdicts in 'adhl' lawsuits    Bride's fingerprint not required in revised e-marriage contract    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Aramco proves financial resilience and operational reliability: Nasser Posts net income of $6.6 billion in Q2 and $23.2 billion in H1 of H2020
Published in The Saudi Gazette on 09 - 08 - 2020

Saudi Aramco announced on Sunday the results for the second quarter and first half of 2020, highlighting the company's financial and operational resilience, and commitment to shareholders despite challenging market conditions caused by the COVID-19 pandemic.
Commenting on the results, Aramco President & CEO Amin H. Nasser, said: "Despite COVID-19 bringing the world to a standstill, Aramco kept going. We have proven our financial resilience and operational reliability, setting a record in our business operations, while at the same time taking steps to ensure the health and safety of our people.
"Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results. Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce, and unrivalled financial and operational strength. This helped us deliver on our plan to maintain a second quarter dividend of $18.75 billion to be paid in the third quarter.
"We will continue to pursue our long-term growth and diversification strategy to capture unrealized and additional value from every hydrocarbon molecule we produce — driving global commerce and enhancing people's lives. The completion of our historic acquisition of a 70% stake in SABIC is yet more evidence of that forward momentum and a testament to our healthy financial position.
"We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies. Meanwhile, we continue to place people's safety first and have adapted to the new normal, implementing wide-ranging precautions to limit the spread of COVID-19 wherever we operate.
"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 — which has one of the lowest upstream carbon footprints in the world."
Financial Highlights
Despite continued global economic disruption and challenges facing the energy sector, Aramco continued to deliver on its commitment to shareholders by declaring a dividend of $18.75 billion for the second quarter, compared to $13.4 billion for the second quarter of 2019.
Aramco navigated challenging market conditions to record net income of $6.6 billion for the second quarter and $23.2 billion for the first half of 2020, respectively, compared to $24.7 billion and $46.9 billion in the corresponding periods of 2019. This demonstrates Aramco's agility, strength and resilience across market cycles.
Free cash flow was $6.1 billion in the second quarter and $21.1 billion for the first half of 2020, respectively, compared to $20.6 billion and $38.0 billion for the same periods in 2019.
The gearing ratio was 20.1% at the end of June, mainly reflecting deferred consideration for the Saudi Basic Industries Corporation (SABIC) acquisition and the consolidation of SABIC's net debt onto Aramco's balance sheet.
Capital expenditure was $6.2 billion in the second quarter and $13.6 billion for the first half of 2020. Aramco continues to implement its capital spending optimization and efficiency program, and expects capital expenditure to be at the lower end of the $25 billion to $30 billion range for 2020.
Operational Highlights
The COVID-19 pandemic has spread rapidly throughout the world, resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas and petroleum products.
Under these challenging market conditions, Aramco continued its strong track record of reliable supply, achieving 99.8% reliability in the delivery of crude oil and other products in the second quarter of 2020.
The company demonstrated reliable upstream performance with total hydrocarbon production of 12.7 million barrels per day of oil equivalent in the second quarter of 2020.
Aramco achieved a historic highest single day crude oil production of 12.1 million barrels on April 2, 2020.
To meet future global and domestic energy demand, Aramco continues to expand its gas business. In line with this strategy, the Fadhili Gas Plant reached its full production capacity of 2.5 billion standard cubic feet per day during the second quarter, after successfully completing its commissioning activities.
The downstream business continues to deliver on its long-term strategy of strategic integration and diversification.
In June 2020, Aramco successfully completed the acquisition of a 70% stake in SABIC, for $69.1 billion. SABIC is a world-class, diversified petrochemicals company with complementary chemicals capabilities.
The acquisition enhances Aramco's existing downstream portfolio, accelerates its petrochemicals growth, increases existing chemicals volumes and expands its international reach.
In July 2020, the Oil and Gas Climate Initiative (OGCI) member companies announced a target to reduce the average carbon intensity of their aggregated upstream oil and gas operations to between 20 kg and 21 kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe) by 2025, from a collective baseline of 23 kg CO2e/boe in 2017.
Aramco, an OGCI member, achieved an upstream carbon intensity of 10.4 kg CO2e/boe in 2019. The company's Greenhouse Gas emissions were verified by an independent third party.
COVID-19 Update
Throughout the ongoing COVID-19 pandemic, Aramco has remained committed to the safety of its people, establishing protocols to monitor and limit the spread of COVID-19.
The company has helped its people and communities around the world confront the virus through initiatives such as employee donation programs, medical support services and monetary contributions.
Working with communities in each of its geographies, Aramco and its subsidiaries have provided much-needed equipment to hospitals, such as ventilators, high-efficiency air purifiers and personal protective equipment for frontline healthcare professionals.
Aramco has extended financial support to aid agencies around the world to help combat the spread of COVID-19. Aramco Overseas Company and Aramco's regional affiliates have made donations of $6.7 million to organizations in the United States, Asia and Europe to support emergency workers and help protect vulnerable groups.
This includes financial support to multiple food banks and to advance trials of treatments for COVID-19 patients.
In Saudi Arabia, Aramco has contributed over $50 million to the Health Endowment Fund of the Ministry of Health to support efforts to combat COVID-19. It also matched an amount raised by Aramco employees through staff donations, with a total of $3.5 million going towards the distribution of welfare supplies to more than 20,000 deserving households, including orphans and widows, across the Kingdom.
Despite the virus's impact on demand, the company continues to place great importance on maintaining its industry-leading capabilities and operations, backed by its world-class supply chain, to ensure its customers' requirements are met. — SG


Clic here to read the story from its source.