Saudi Arabia’s oil major, Aramco, records 73 percent plunge in the second quarter amid Covid-19 pandemic. The company’s second-quarter net profit slumped more than 73 percent, a drop which is unexpected.
CEO Amin Nasser told the media, “Look at China, their gasoline and diesel demand is almost at pre-COVID 19 levels. We are seeing that Asia is picking up and other markets (too). As countries ease the lockdown, we expect the demand to increase. We intend to pay the $75 billion, subject to board approval and market conditions.”
It is reported that Aramco’s second quarter net profit fell by 73.4 percent. According to the company, the expected capital expenditure for the year will be placed at the lower end range between $25 billion and $30 billion.
The company’s Q2 cash flow was recorded to be $6.1 billion and $21.1 billion in Q1.
Mr. Nasser said that there is some recovery in the energy market and demand as economies slowly restarting operations after easing of the lockdown due to the pandemic which has hit major businesses across every continent on the planet.
It is reported that in second quarter of the year, major oil companies have incurred huge losses due to the current situation. The world consumption across the globe has been limited and the prices have surged beyond expectations.
In 2019, the oil major was listed in Riyadh year in a record $29.4 billion flotation. The Covid-19 pandemic has shanked Aramco’s crude oil demand including petroleum products and natural gas.