Oil company Saudi Aramco made a lot less profit in the second quarter: 5.6 billion euros compared to 20 billion euros in the second quarter of 2019. That is a decrease of 73 percent. The company is very affected by the low oil price reported it’s Sunday.
Due to the corona crisis, the demand for oil was very low and the price fell to a low point. In addition, Saudi Aramco boosted oil production at the beginning of the year, bringing it to its highest level ever on April 2. As a result, there was a lot of supply, while there was little demand.
According to CEO Amin Nasser, demand has been rising again since lockdowns in several countries have been cautiously lifted. “In China, demand is almost back to its old level,” he says.
Despite the large drop in profit, the oil company plans to pay a dividend of approximately 16 billion euros over the second quarter. That amount is mainly intended for the Saudi government.
–
