The net profit of Saudi Aramco, the state oil company of Saudi Arabia, decreased by 20.6 percent last year. The company reports on Sunday that it is a result of low oil prices and reduced production.
Last year, Saudi Aramco posted net profit of $ 88.2 billion. In 2018 it was still more than 111 billion. Amin Nasser, CEO of the company, calls 2019 an “exceptional year for Saudi Aramco”.
Earlier this month, the company announced it would increase production capacity to 13 million barrels per day. At first it was 12 million barrels. Experts think that it may take some time before that production is increased.
Capacity building is part of the price war Saudi Arabia is unleashing in the oil market following the failure of a production restriction deal with Russia. In addition, Riyadh significantly reduces the prices of its oil, while production is increased. In April, Saudi Aramco’s daily oil deliveries should already rise to 12.3 million barrels. That would be a record level.