State-owned oil operator Saudi Aramco, the world's largest hydrocarbon company, will net around 277 billion Saudi riyals ($74 billion) in 2020, a local investment firm has said.
But the profits are expected to rebound by nearly 31 percent to about 363 billion riyals ($96.8 billion) in 2021 after an expected improvement in crude prices, Al-Rajhi Capital company said in a report published on Wednesday.
It said the decline in net earnings in 2020 would be a result of lower oil prices despite Aramco's decision to boost output to more than 11 million barrels per day (bpd).
Aramco's net income stood at around $88.2 billion in 2019 and as high as $111.1 billion in 2028, according to the firm.
In a recent report, Aramco said weak crude prices would prompt it to cut capital spending to between $25 billion and $30 billion for 2020 compared to $32.8 billion in 2019. At the same time, the company recently announced plans to increase production capacity by a million barrels a day to 13 million bpd.
(Writing by Nadim Kawach; Editing by Anoop Menon)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© Thomson Reuters Projects News 2020