Saudi Aramco posts 49% profit slump to SAR 131.3 bln in 9M 2020

The Saudi Arabian Oil Co. (Saudi Aramco) posted a 49% drop in net profit after Zakat and tax to SAR 131.3 billion for the first nine months of 2020, compared to SAR 255.7 billion in the corresponding period last year.

The decrease was attributed to lower crude prices, sales volumes, and reduced refining and chemicals margins.

The third quarter net profit after Zakat and tax fell by 45% to SAR 44.2 billion, compared to SAR 79.84 billion a year earlier. 

The slump was attributed to the impact of lower crude prices, sales volumes, weaker refining and chemicals margins. It was, however, partly offset by a decrease in the royalty rate from 20% to 15%, lower income taxes and Zakat due to lower earnings, along with higher other income related to gas products sales.

On a sequential basis, net profit surged 79.6%, backed by higher crude oil prices, partly offset by a decrease in crude oil volumes sold, and an increase in income taxes and Zakat mainly due to higher earnings for the third quarter.