(C) Reuters. FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq
DUBAI (Reuters) – Saudi Arabian oil giant Aramco (SE:2222)’s net debt-to-equity ratio more than doubled to 55% in 2020 from 26% a year earlier, the company said in a financial results report.
Net debt rose to 605.9 billion riyals ($161.56 billion) last year from 270.2 billion riyals in 2019, the results showed.
The world’s largest oil exporter said on Sunday net profit fell 44.4% to 183.76 billion riyals ($49 billion) for the year ended Dec. 31, from 330.69 billion riyals a year earlier, as the COVID-19 pandemic depressed global demand for crude.
But despite the sharp decline in profits, it maintained its pledge to declare a $75 billion dividend for 2020, most of which goes to the Saudi government.
In its financial results report the company said payments to the government last year totalled around 412 billion riyals ($109.85 billion), about 30% less than in 2019.
Those payments include dividends, royalties and income taxes.
The figure is in line with Saudi estimates in December, when the government said it expected state oil revenues to drop by over 30% year on year to 412 billion riyals.
($1 = 3.7504 riyals)
Saudi Aramco’s debt-to-equity ratio more than doubles in 2020
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