Saudi Aramco reported a 25% fall in net income for the first quarter on Tuesday, as the state-owned oil giant battles with a dramatic slide in oil prices and cratering global demand.
In a release published Tuesday, the company said net income slid to 62.5 billion riyals ($16.6 billion) in the first three months of the year, down from 83.3 billion riyals over the same period in 2019.
“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 President and CEO Amin Nasser said in the release.
“Aramco has demonstrated resilience during economic cycles and has an unparalleled position due to a strong balance sheet and low-cost structure.”
Aramco declared its dividend of $18.75 billion in the first quarter, despite the fall in revenues. The company had pledged to issue a $75 billion dividend annually for five years as part of its pitch to investors before going public, and it does not appear to be rolling that back yet despite cuts to capital spending.
The announcement comes amid an unprecedented global demand plunge as the world’s economy is hammered by the coronavirus pandemic and subsequent lockdowns. International benchmark Brent crude is down more than 50% year-to-date, trading at just under $30 per barrel Monday morning London time — less than half of the price Saudi Arabia needs to balance its budget.
