Saudi Aramco free cash flow falls dramaticallyChristian Fernsby ▼ | August 10, 2020
Saudi Aramco navigated challenging market conditions to record net income of $6.6 billion for the second quarter and $23.2 billion for the first half of 2020, respectively, compared to $24.7 billion and $46.9 billion in the corresponding periods of 2019.
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Free cash flow was $6.1 billion in the second quarter and $21.1 billion for the first half of 2020, respectively, compared to $20.6 billion and $38.0 billion for the same periods in 2019.
The gearing ratio was 20.1% at the end of June, mainly reflecting deferred consideration for the Saudi Basic Industries Corporation (SABIC) acquisition and the consolidation of SABIC’s net debt onto Aramco’s balance sheet.
Capital expenditure was $6.2 billion in the second quarter and $13.6 billion for the first half of 2020. Aramco continues to implement its capital spending optimization and efficiency program, and expects capital expenditure to be at the lower end of the $25 billion to $30 billion range for 2020. ■