Saudi Aramco sees 12% decrease in net income
Baku, Azerbaijan, Aug.12
By Leman Zeynalova – Trend:
Net income of Saudi Arabia’s Saudi Aramco company for the first half of 2019 was SAR 175,871 million ($46,899 million), reflecting a decrease of 12 percent compared to SAR 198,820 million ($53,019 million) in the first half of 2018, Trend reports citing the company.
Saudi Aramco’s report shows that this was mainly due to a decrease of 4% in the average realized price of crude oil from $69 to $66 per barrel and an increase in purchases, producing and manufacturing costs and depreciation and amortization costs, partially offset by a decrease of SAR 9,816 million ($2,617 million) in income taxes.
“The increase of SAR 9,123 million ($2,433 million) in purchases was primarily due to the higher volumes purchased by ATC and Motiva as the Company continues to grow its crude oil trading business. Producing and manufacturing costs increased by SAR 5,189 million ($1,384 million) mainly due to the consolidation of ARLANXEO Holding B.V.’s production costs of SAR 5,130 million ($1,368 million) following the December 31, 2018 acquisition,” said the Saudi company.
Reportedly, the increase of SAR 4,534 million ($1,209 million) in depreciation and amortization was due to the recognition of right-of-use assets on the Consolidated Balance Sheet, following the adoption of IFRS 16 – Leases (IFRS 16), effective January 1, 2019 and other additions to depreciable assets.
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