Saudi Aramco net income drops to $46.9bn in H1 2019

The oil giant for the first time held an earnings call to reveal its financial results for the first half of 2019

Saudi Aramco, Ipo, H1 2019, Amin nasser, SABIC

In a first for the company, Saudi Aramco announced its half-year results in an August earnings call. It posted net income of $46.9bn for the first half 2019, compared to $53bn for the same period last year.

"Disclosing our financial results for the first time, as part of our $12bn debut international bond issuance, marked a significant milestone in Saudi Aramco’s history," said Saudi Aramco CEO Amin Nasser. "We demonstrated our reliability with near 100% delivery on our customers’ requirements for oil and refined products, maintaining our total hydrocarbon production of 13.2mn barrels of oil equivalent per day and an average daily crude production of 10mn barrels per day."

Earnings before interest and tax was $92.5bn, compared with $101.3bn a year earlier. Free cash flow was $38bn, compared to $35.6bn for the same period last year. Capital expenditure was $14.5bn, compared to $16.5bn for the same period in 2018.  

"Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance, cost management and fiscal discipline," Nasser added.

He continued to note the company's efforts to grow its downstream portfolio, emphasising its acquisition of a 70% equity stake in SABIC.

"This is a major step in accelerating growth in downstream through refining and petrochemicals integration, maximizing the profitability from every molecule we produce," he said.

"We grew our trading business and scaled up innovation efforts through pioneering initiatives such as crude-to-chemicals, non-metallic materials manufacturing, and hydrogen fuels.

"Environmental and safety performance is at the forefront of the way we operate. We are particularly proud of the fact that for the first time we announce our Upstream carbon intensity, which is amongst the lowest globally.

"Looking ahead, we will maintain a prudent and flexible balance sheet. Our financials are strong and we will continue to invest for future growth."

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