The state-run oil giant posted a full-year profit of $88.12 billion due to lower crude oil prices and production volumes. The results are well below expectations and come just three months after its record-setting IPO.
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Saudi Arabia's state-run oil giant on Sunday announced a 21% drop in its 2019 profit.
Saudi Aramco says it achieved a full-year 2019 net profit after tax and Islamic law charges (zakat) of $88.12 billion (€$77.1 billion), compared with $111.1 billion in 2018.
The fall was much higher than analysts expected, which the company said: "was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins."
Aramco also noted a $1.6 billion impairment associated with Sadara Chemical Company, its joint venture with the US Dow Chemical Company.
Total revenues, including other income related to sales, were 1.106 trillion riyals ($294.7 billion; €264 billion) in 2019, down from 1.194 trillion riyals the year prior.
Record IPO overshadowed
The plunge in profits comes just three months after the energy giant set a new initial public offering (IPO) record, beating the Chinese e-commerce giant Alibaba Group Holdings' listing in 2014.
Aramco raised $25.6 billion from the sale of just 1.5% of its shares — a move that formed part of Crown Prince Mohammed bin Salman's strategy to steer the country's economy away from reliance on oil.
The firm's shares rallied 19% after the December 11 listing, lifting the company's valuation above the $2 trillion mark.
But as oil prices subsequently tumbled, Aramco shares have followed suit and are now below their listing price.
Coronavirus in the Middle East: Lock down or play down?
Countries such as Kuwait and Israel have instituted virtual lockdowns in the face of COVID-19, while religious gatherings have been limited at a time of year ripe with ritual. Others have been slower to act.
Image: Reuters/A. Jalal
Iran: Bearing the brunt
With a high number of deaths and cases, Iran has been a regional epicenter of the outbreak. Several top officials have been infected and there are concerns the number of cases are higher than reported. The government has canceled Friday prayers but health workers have complained they are under-equipped. Iran has asked the International Monetary Fund for emergency funding.
Image: picture-alliance/dpa/M. Hosseini
Saudi Arabia: strict measures
Saudi authorities banned international religious pilgrims early on, leaving the Grand Mosque's Kaaba in Mecca virtually empty. Other measures have involved sanitizing streets and mosques, closing schools and universities, an extensive travel ban and fines of up to 500,000 riyals (€120,000/$133,000) for people hiding health details. It has also locked down the Shiite-minority area of Qatif.
Image: picture-alliance/AP/A. Nabil
Egypt: Travel restrictions
In Cairo, hundreds of Egyptians tried to get certificates showing they have a clean bill of health after Saudi Arabia announced new travel regulations. Although Egypt has only detected a low number of cases, more than 100 tourists returning from the country tested positive for the virus. Officials have limited sermons to 15 minutes and cancelled large public gatherings.
Image: picture-alliance/NurPhoto/I. Safwat
Israel, West Bank: Shielding themselves from the world
Gatherings of less than 100 are still allowed, leaving visits to the Wailing Wall open. But Israeli authorities have virtually halted air traffic in and out of its territory and tourists are required to self quarantine. The city of Bethlehem has declared a state of emergency, emptying streets usually teeming ahead of Easter. Israeli researchers have said they are close to finding a COVID-19 cure.
Image: picture-alliance/AP Photo/A. Schalit
Kuwait: Virtual lockdown
As Kuwaitis kept their distance at this makeshift testing center, the country entered a virtual lockdown, with the entire workforce given a two-week holiday from March 12. All commercial flights have been suspended from Friday on, schools have been closed and gatherings at restaurants, malls and commercial centers have been banned.
Image: picture-alliance/AA/J. Abdulkhaleg
Iraq: Coronavirus fails to dampen protests
Iraq's protest movement has set up its own makeshift disinfection stations to counter the spread of COVID-19. Although Iraq is highly prone to the outbreak due to its proximity and close relations with Iran, protesters have been defiant, saying the government is the virus. Elsewhere authorities have closed major public spaces and religious institutions have cancelled gatherings.
Image: picture-alliance/AP Photo/K. Mohammed
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On Thursday, the firm's market value dropped to around $1.55 trillion, but it still remains the world's largest publicly listed company, beating Western oil majors such as Exxon Mobil, and also Apple.
Aramco, which supplies around 10% of the world's oil, said it would cut capital expenditure in 2020 due to market conditions as a result of the coronavirus outbreak, as well as "recent commodity price volatility" — alluding to the lower oil prices.
