Special Report-Saudi Aramco Profits Fell 73% as Oil Demand Shrinks

Saudi Aramco, the world’s largest oil company, announced on Sunday that its quarterly earnings fell more than 73 percent yearly, as lockdowns imposed to control the Covid-19 pandemic cut the demand for oil and slammed prices.

The company declared that profit fell from $24.7 billion to $6.6 billion. Despite the loss, the company said it would continue paying a quarterly dividend of $18.75 billion. Saudi Aramco is forced to pay $75 billion a year because of their commitment in the initial public offering on Saudi stock exchange.

Saudi government, which owns more than 98 percent of the company, is nearly the sole benefactor of the dividend pay. It is estimated that the company is borrowing $12 billion to pay the dividend.

Saudi Aramco recently lost its first place as the world’s most valuable company to Apple. The company has a market capitalization of $1.72 trillion compared to Apple’s $1.9 trillion.

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