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Saudi Aramco posts 11.5% decline in H1 2019 net income to $47bn

The oil giant continued to deliver solid earnings despite lower oil prices in H1 2019, said president and CEO of Saudi Aramco

Saudi Aramco produced 13.2 million barrels of oil equivalent per day in H1 2019.
CW archives/ Reuters
Saudi Aramco produced 13.2 million barrels of oil equivalent per day in H1 2019.

Saudi Arabian oil giant and the largest oil producer in the world, Saudi Aramco, recorded an 11.5% decline in H1 2019 net income to reach $46.9bn (SAR175.9bn) compared to corresponding numbers of $53bn (SAR198.8bn) in the same period last year – which the company’s president and chief executive officer, Amin H. Nasser, stated was achieved “despite lower oil prices” in the first half of the year.

The company’s half-yearly earnings before interest and tax tumbled by 8.7% to $92.5bn (SAR346.9bn) from $101.3bn (SAR379.9bn) in the same period last year, while free cash flow was $38bn (SAR142.5bn), compared to $35.6bn (SAR133.5bn) in H1 2018.

In H1 2019, capital expenditure stood at $14.5bn (SAR54.4bn) compared to $16.5bn (SAR61.9bn) in the first half of 2018, according to UAE-based news agency Wam

Commenting on the half-yearly financial results, Nasser said: "We continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance, cost management and fiscal discipline.”

Nasser added that unveiling Saudi Aramco’s financial results for the first time marked a significant milestone in the company’s history and comes in line with the oil giant’s $12bn (SAR45bn) international bond issuance debut.

''We demonstrated our reliability with near 100% delivery on our customers’ requirements for oil and refined products, maintaining our total hydrocarbon production of 13.2 million barrels of oil equivalent per day and an average daily crude production of 10 million barrels per day,'' added Nasser.

According to Nasser, the company continued to deliver its downstream growth strategy, including acquisitions in both Saudi Arabia and key international markets on the back of a strong upstream performance.

Nasser said: “These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations.''

He added: “Our financials are strong and we will continue to invest for future growth."

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