Earnings

Saudi Aramco's first-half net income falls 12% to $47 billion

Reuters with CNBC.com
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Key Points
  • In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the average realized price of crude oil compared to the same period in 2018, from $69 to $66 per barrel.
  • India's Reliance Industries announced on Monday that it will sell a 20% stake in its oil and chemicals business to Saudi Aramco.
An Aramco oil tank is seen at the Production facility at Saudi Aramco's Shaybah oilfield in the Empty Quarter, Saudi Arabia.
Ahmed Jadallah | Reuters

Saudi Aramco, the world's top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier.

By comparison, Apple Inc, the world's most profitable listed company, made $31.5 billion in the first six months of its financial year.

Aramco said total revenues including other income related to sales were at $163.88 billion in the first half of this year, down from $167.68 billion a year earlier, on lower oil prices and reduced production.

In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the average realized price of crude oil compared to the same period in 2018, from $69 to $66 per barrel.

Aramco President and CEO Amin Nasser said the company had continued to deliver on its "downstream growth strategy" through acquisitions both domestically and in international markets.

"These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations," Nasser said.

No reason for Aramco IPO delay after SABIC deal finalized: Saudi PIF managing director
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India's Reliance Industries announced Monday that it will sell a 20% stake in its oil and chemicals business to Saudi Aramco, in one of the largest ever foreign investments into India. Reliance Chairman Mukesh Ambani said the deal values the business at $75 billion including debt.

The Aramco report also showed earnings before interest and taxes (EBIT) came in at $92.5 billion for the period, compared to $101.3 billion for the first half of 2018.

The company increased its dividend payments from $32 billion at the halfway point of last year to $46.4 billion, bolstered by a $20 billion special dividend paid earlier this year as a result of its "exceptionally strong financial performance" in 2018, the report highlighted.