Aramco posts solid H1 income despite lower oil prices

Saudi Aramco, a global petroleum and natural gas company, has reported a net income of $46.9 billion for the first half (H1) of 2019, compared to $53 billion for the same period last year, marking a drop of 11.5 per cent.

The company’s earnings before interest and tax was $92.5 billion, compared with $101.3 billion a year earlier. Free cash flow was $38.0 billion, compared to $35.6 billion for the same period last year. Capital expenditure was $14.5 billion, compared to $16.5 billion for the same period in 2018.

Saudi Aramco president & CEO Amin H Nasser said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance, cost management and fiscal discipline.”

“Disclosing our financial results for the first time, as part of our $12 billion debut international bond issuance, marked a significant milestone in Saudi Aramco’s history.
“Leveraging our strength in Upstream, we continued to deliver on our Downstream growth strategy, including acquisitions in both Saudi Arabia and key international markets.
We are particularly proud of the fact that for the first time we announce our Upstream carbon intensity, which is amongst the lowest globally.

“Looking ahead, we will maintain a prudent and flexible balance sheet. Our financials are strong and we will continue to invest for future growth,” Nasser said.