Saudi Aramco said Sunday that its net profit plunged 73.4% in the second quarter to $6.6 billion. But CEO Amin Nasser said there are signs of improvement as coronavirus shutdowns ease.
It was the second consecutive quarter of falling earnings at the world’s top oil producer — net profit in the January-March period slumped 25%.
“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies,” Nasser said in a statement.
He elaborated on a conference call with reporters, pointing to the world’s second-largest economy as a bright spot.
“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],” he said, according to Reuters. The massive Saudi oil monopoly has seen shares drop by over 6% this year in light of plummeting oil prices. Brent crude futures, the global benchmark, are off more than 30% year-to-date.
ramco, which went public last year in the world’s biggest-ever IPO, is looking more and more like an outlier in an industry that has been rocked by plummeting demand caused by the coronavirus.
Aramco is sticking with a $75 billion dividend for this year even as rivals such as Royal Dutch Shell and BP slash investor payouts. And there are few signs the company will follow rivals who say they are pivoting to cleaner fuel.
Stay tuned: Aramco executives will discuss their second-quarter results in an investor call scheduled for 8:30 a.m. ET.
