Saudi state oil NSE -0.26 % group Aramco on Sunday reported a 73.4 per cent fall in second-quarter net profit, a steeper drop than analysts had forecast, and said it expected capital expenditure for 2020 to be at the lower end of a $25 billion to $30 billion range.
The world’s biggest oil exporter said the rapid spread of COVID-19 globally had significantly reduced demand for crude oil, natural gas and petroleum products.
“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies,” CEO Amin Nasser said in a statement.
Net profit fell to 24.6 billion riyals ($6.57 billion) for the quarter to June 30 from 92.6 billion riyals a year earlier.
All major oil companies have taken a hit in the second quarter as lockdowns to contain the coronavirus limited travel, which hurt oil demand and sent oil prices tumbling to levels not seen in nearly two decades.
Aramco said it would distribute a dividend of $18.75 billion for the second quarter of this year, in line with its plan to pay a base dividend of $75 billion for 2020.