The
Commenting on the results, Aramco President & CEO
'The COVID-19 crisis is unlike anything the world has experienced in recent history and we are adapting to a highly complex and rapidly changing business environment. Aramco has demonstrated resilience during economic cycles and has an unparalleled position due to a strong balance sheet and low-cost structure.
'We have delivered solid earnings with robust free cash flow, despite weak energy demand and low oil prices. We remain committed to the safety of our people while delivering on our long-term value creation strategy for all of our shareholders.
'During the first quarter, we took steps to further optimize our planned 2020 capital spending and identified opportunities to improve operational productivity.
'We retain significant flexibility to adjust expenditures and have considerable experience in managing the business through times of adversity. This resilience will enable us to continue delivering on our commitments to our shareholders.
'Looking ahead to the remainder of 2020, we expect the impact of the COVID-19 pandemic on global energy demand and oil prices to weigh on our earnings. We continue to reinforce the business during this period by reducing our capex and driving operational excellence. Longer term we remain confident that demand for energy will rebound as global economies recover.'
Financial Highlights
Net income remained robust at
Cash flow from operating activities was strong at
Free cash flow was robust at
Our balance sheet remains strong and gearing ratio decreased from -0.2% on
Total dividends of
First quarter capital expenditures were
Operational Highlights
Under challenging market conditions, Aramco maintained its pre-eminence in oil and gas production.
Aramco, through its wholly owned subsidiary
During the first quarter, the Fadhili Gas Plant increased its processing capacity from 1.5 billion standard cubic feet per day (bscfd) at year-end 2019 to reach 2.0 bscfd during the first quarter of 2020. Progress remains on track and the plant is expected to reach full capacity of 2.5 bscfd this year.
Despite a challenging market environment, the downstream business is keeping pace with its long-term strategy to capture value across the hydrocarbon value chain through further strategic integration and diversification of its operations.
COVID-19 Update
In response to COVID-19, the Company has implemented a series of measures to protect its people, its communities and its operations to supply the world with the energy it needs.
The Company has prioritized the safety, health and wellbeing of its employees, implementing measures to reduce the risk of COVID-19 spread and mitigate the virus's impact. These measures include remote working for many employees, active prevention programs, detailed contingency plans and leading medical support services from
Actions have also been taken to ensure all sites remain operational. Measures include the formation of dedicated taskforces to prevent supply chain disruption and to ensure the well-being of contractors and staff. The Company continues to utilize inbuilt systems for managing global crises to continue delivering energy to customers.
In times of crisis, community support is paramount. The Company has established campaigns to help fight the spread of COVID-19 and provide humanitarian assistance to those who need it most. For example, Aramco supported the Kingdom's healthcare sector by contributing
Additional information on
Contact:
Email: international.media@aramco.com
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