Energy giant Saudi Aramco on Tuesday posted a 25 percent slump. In first-quarter profits and said the coronavirus crisis which triggered a crash. In oil prices would weigh heavily on-demand within the year ahead.
Aramco was listed on the Saudi stock exchange in December following. A historic $29.4 billion initial public offering — the world’s largest — but since then has faced a torrid environment.
Oil prices slumped to just about two-decade lows in March, losing almost two-thirds of their value because the coronavirus pandemic sent the planet into recession.
Prices plummeted further in April amid a price competition between Russia and Saudi Arabia because the major producers scrambled to secure market share.
“The COVID-19 crisis is unlike anything the planet has experienced. In recent history and that we are adapting to a highly complex and rapidly changing business environment,” CEO Amin Nasser said during a statement.
Aramco said that a steep decline in global demand for energy caused by the pandemic would undermine its full-year results.
“Longer term we remain confident that demand for energy will rebound as global economies recover,” Nasser said.
Riyadh announced it might cut output by quite it had pledged — reducing by a further 1.0 million bpd — providing markets with a much-needed boost. Because the world economy cautiously emerges from lockdown.
The move means in June, Aramco production will drop to 7.5 million bpd. Its lowest level since mid-2002, consistent with analysts.
Global Energy Giants
Almost all global energy giants, including Exxon Mobil, Chevron, and BP, have reported huge losses within the half-moon amid the severe downturn.
Aramco, which is liable for the stewardship of Saudi’s huge energy reserves. It has relied on its extremely low production costs to stay profitable.
Its share price rose 0.5 percent to 31.05 riyals at the beginning of trading on Tuesday. Down three percent from the listing price of 32 riyals.
Since the beginning of the year. Aramco shares have lost 12 percent and its current market price stands at $1.66 trillion, way down from levels just over $2 trillion that it hit soon after listing.
