One of the largest and for sure the richest oil company, Saudi Aramco, reported a record fall in profit in the third quarter of 2020. According to the official data, the reading literally halved.
This year, the company’s third-quarter earnings amounted to $11.78 billion. For the same period last year, Saudi Aramco earned $21.29 billion. In general, 2020 has been a tough year for the world's biggest oil producer. Its net profit almost halved to $35 billion in the first nine months of the year, while free cash flow decreased 1.7 times. However, financial challenges did not trigger the reduction or cancellation of dividends payment. Instead, the company allocated $18.75 billion to distribute dividends. Independent experts blame the oil company’s misfortunes on the coronavirus pandemic. Saudi Aramco, like other producers, is incurring losses due to a drop in demand and a decrease in oil prices.
In September, the Saudi Arabian petroleum company announced the establishment of Corporate Development to optimize the company's portfolio. The goal of this organization was to strengthen Saudi Aramco’s resilience, agility, and ability to respond to changing market dynamics. Reportedly, the oil giant may give up many projects and sell part of its assets.
