<p>Saudi Aramco, Saudi Arabia’s national oil company, said Sunday that its net income last year had fallen by 44%, to $49 billion, as lower oil prices stemming from the pandemic cut into earnings.</p>.<p>Company CEO Amin Nasser described 2020 in a statement accompanying the earnings data as “one of the most challenging years in recent history.”</p>.<p>But Aramco, the world’s largest oil producer, said it would stick by a pledge to pay a $75 billion dividend. Nearly all of the payment will go to the Saudi government, which owns about 98% of the company.</p>.<p>The company was listed on the local Tadawul exchange in 2019 in the largest valuation for an initial public offering.</p>.<p>Despite the listing, the Saudi government has retained its sway over the company’s oil production policies, leading to a roller-coaster year. On orders from the Saudi government, the company ramped up oil output last spring as it pursued a price war with Russia. The surge led the company to hit a record-production level of 12.1 million barrels a day in April and also contributed to a glut of oil and a sharp fall in global prices.</p>.<p>More recently, Aramco has been throttling back production under an agreement with other members of OPEC, as well as Russia and some other producers, a group called OPEC Plus. In January, Saudi Arabia said it would cut an additional 1 million barrels a day below the quota agreed with OPEC Plus, a policy that it is continuing. Average production for 2020 was 9.2 million barrels a day.</p>.<p>The data released Sunday showed that Aramco is paying out more money in dividends than it is earning from oil activities. Free cash flow, a measure of earnings produced after expenses, was also $49 billion, meaning, in effect, the company was borrowing $26 billion to pay shareholders.</p>.<p>Sunday's earnings statement was limited to a few highlights. Saudi Aramco is expected to provide more details during a call with financial analysts Monday.</p>
<p>Saudi Aramco, Saudi Arabia’s national oil company, said Sunday that its net income last year had fallen by 44%, to $49 billion, as lower oil prices stemming from the pandemic cut into earnings.</p>.<p>Company CEO Amin Nasser described 2020 in a statement accompanying the earnings data as “one of the most challenging years in recent history.”</p>.<p>But Aramco, the world’s largest oil producer, said it would stick by a pledge to pay a $75 billion dividend. Nearly all of the payment will go to the Saudi government, which owns about 98% of the company.</p>.<p>The company was listed on the local Tadawul exchange in 2019 in the largest valuation for an initial public offering.</p>.<p>Despite the listing, the Saudi government has retained its sway over the company’s oil production policies, leading to a roller-coaster year. On orders from the Saudi government, the company ramped up oil output last spring as it pursued a price war with Russia. The surge led the company to hit a record-production level of 12.1 million barrels a day in April and also contributed to a glut of oil and a sharp fall in global prices.</p>.<p>More recently, Aramco has been throttling back production under an agreement with other members of OPEC, as well as Russia and some other producers, a group called OPEC Plus. In January, Saudi Arabia said it would cut an additional 1 million barrels a day below the quota agreed with OPEC Plus, a policy that it is continuing. Average production for 2020 was 9.2 million barrels a day.</p>.<p>The data released Sunday showed that Aramco is paying out more money in dividends than it is earning from oil activities. Free cash flow, a measure of earnings produced after expenses, was also $49 billion, meaning, in effect, the company was borrowing $26 billion to pay shareholders.</p>.<p>Sunday's earnings statement was limited to a few highlights. Saudi Aramco is expected to provide more details during a call with financial analysts Monday.</p>