Saudi Aramco reports strong 2019 results despite difficult macro environment
Dhahran, The Saudi Arabian Oil Company (“Saudi Aramco” or
“the Company”) today announced its full-year 2019 financial results, delivering strong profits
and dividends despite a lower price environment and challenging margins in refining and
Net income was $88.2 billion for the full-year 2019, compared to $111.1 billion in 2018. The
decrease was primarily due to lower crude oil prices and production volumes, coupled with
declining refining and chemical margins, and a $1.6 billion impairment associated with Sadara
Free cash flow* was $78.3 billion, compared to $85.8 billion the previous year. This was primarily
due to lower income, offset by lower capital expenditures and favorable working capital
The balance sheet showed a gearing ratio of -0.2% at the end of 2019, demonstrating the
Company’s strong and prudent financial framework.
Total dividend payments were $73.2 billion in 2019. As disclosed in the IPO prospectus, the
Company has declared ordinary dividends of $3.9 billion, covering the period from December 5,
2019, the date IPO shares were allocated to investors, through December 31, 2019. These
ordinary dividends represent a proportion of the $13.4 billion total ordinary dividends declared
for the fourth quarter 2019. The dividends of $3.9 billion will be paid on March 31, 2020 to
registered shareholders as at March 18, 2020.
Saudi Aramco: Public
With respect to calendar year 2020, and as described in the Company’s IPO prospectus, the
Company, subject to Board approval, intends to declare aggregate ordinary cash dividends of at
least $75.0 billion a year, paid quarterly. First quarter 2020 dividends are anticipated to be
announced along with the Company’s first quarter 2020 financial results, which are expected to
be published in May 2020.
Capital expenditure last year was $32.8 billion, compared to $35.1 billion in 2018. The Company
expects capital spending for 2020 to be between $25 billion and $30 billion in light of current
market conditions and recent commodity price volatility. Capital expenditure for 2021 and
beyond is currently under review. The Company’s low upstream costs and low sustaining capital
provide significant flexibility and demonstrate differentiation to its peers.
Source: Saudi Press Agency