Saudi Aramco posts 50% profit drop to SAR 88.9 bln in H1 2020

09/08/2020 Argaam Exclusive

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The Saudi Arabian Oil Co. (Saudi Aramco) posted a 50% drop in net profit after Zakat and tax to SAR 88.9 billion for H1 2020, compared to SAR 176 billion in H1 2019.

The decrease was attributed to lower prices, inventory reassessment losses, as well as lower refining and chemicals margins on 2020 net income.

Financials (M)

Item	6m 2019	6m 2020	Change‬
Revenues	619,941.00	389,699.00	(37.1 %)
Gross Income	390,047.00	232,557.00	(40.4 %)
Operating Income	347,877.00	182,824.00	(47.4 %)
Net Income	176,017.00	88,902.00	(49.5 %)
Average Shares	242,000.00	242,000.00	-
EPS (Riyals)	0.73	0.37	(49.5 %)

The second quarter net profit after Zakat and tax plunged 73% to SAR 24.6 billion, compared to SAR 92.6 billion a year earlier.

The slump was attributed to the impact of lower crude prices, declining refining and chemicals margins, 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.

When compared to the previous quarter, net profit plummeted 60.6%, mainly due to lower crude prices, lower income taxes and Zakat, as well as the absence of inventory reassessment losses that impacted the first quarter of 2020.

Current Quarter Comparison (M)

Compared With The

Item	Q2 2019	Q2 2020	Change‬
Revenues	322,307.00	139,354.00	(56.8 %)
Gross Income	202,770.00	81,121.00	(60.0 %)
Operating Income	181,256.00	53,092.00	(70.7 %)
Net Income	92,791.00	25,370.00	(72.7 %)
Average Shares	242,000.00	242,000.00	-
EPS (Riyals)	0.38	0.10	(72.7 %)

Item	Q1 2020	Q2 2020	Change‬
Revenues	250,345.00	139,354.00	(44.3 %)
Gross Income	151,436.00	81,121.00	(46.4 %)
Operating Income	129,732.00	53,092.00	(59.1 %)
Net Income	63,532.00	25,370.00	(60.1 %)
Average Shares	242,000.00	242,000.00	-
EPS (Riyals)	0.26	0.10	(60.1 %)

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