#Saudi Aramco to cut capital spending in 2020, posts drop in 2019 profit - Reuters

Saudi Aramco to cut capital spending in 2020, posts drop in 2019 profit - Reuters:

Saudi Aramco 2222.SE on Sunday said it plans to cut capital spending in the wake of the coronavirus outbreak, as it posted a 21% decline in 2019 net profit due to a drop in oil prices and production, its first earnings announcement as a listed company.

The world’s most profitable company and by far its biggest oil producer, Aramco listed its shares in Riyadh in December in a record $29.4 billion initial public offering that valued it at $1.7 trillion.

Its shares fell below the IPO price last week for the first time, as oil prices crashed after the collapse of an output deal between OPEC and non-OPEC members which led to an oil price war between Riyadh and Moscow. Saudi Arabia has said it plans to ramp up production to gain market share.

Aramco CEO Amin Nasser said in a statement the oil giant has taken steps to rationalize planned capital spending in 2020 following the coronavirus outbreak.

The company expects capital spending for 2020 to be between $25 billion and $30 billion in light of current market conditions and recent commodity price volatility, compared to $32.8 billion in 2019.