The largest oil company in the world, Saudi Aramco has said on this Sunday that the profit of the previous year has fallen over 20% and this is only because of the lower prices of oil. The national producer of oil in Saudi Arabia, is among the most profitable company still in the world as it earns a net income of $88.2 billion in the year 2019. The year before it had earned a profit of $111.1 billion.
This announcement has come as the year 2020 is going to shape up as one miserable year for the oil industry. The crude prices have plummeted already because of the demand going down due to coronavirus. The standoff between the Russian and Saudi Arabian production limit has been worsening the situation. The lower price is going to in all likelihood pressurize the performance of Aramco in this year. The Brent Crude is selling now for close to $33.25 per barrel and this as per a few analysts is going to be going lower as the Russian and other members of organization of the OPEC increasing the production demands for the oil sinks
The stock of Saudi Aramco on the Tadawul Exchange had traded below the level of $8.50 a share, the opening price in their IPO in the month of December. On this Sunday, the price of the share had been close to 28.70 riyals.
The future results of Aramco is going to probably be continuing as being influenced heavily by the policies made by Saudi Arabia which is their main owner. This having failed to agree with Russia, the government had ordered Aramco for ramping the sales up.