Saudi Aramco 2020 profits slump on lower crude prices

Energy giant Saudi Aramco on Sunday posted a 44.4 per cent slump in 2020 net profit due to lower crude prices, as the coronavirus pandemic weighed heavily on global demand.

Aramco, Saudi Arabia’s cash cow, has revealed consecutive falls in profits since it began disclosing earnings in 2019. That has piled pressure on government finances as Riyadh pursues multi-billion dollar projects to diversify the oil-reliant economy.

“Aramco achieved a net income of $49 billion in 2020,” the company said in a statement — down from $88.2 billion in 2019.

Saudi Arabia, the world’s biggest crude exporter, was hammered last year by the double whammy of low prices and sharp cuts in production.