Saudi Aramco saw its net income decline by 25% in the first quarter of 2020, from the same period of last year, according to the financial results statement released by the world's largest crude oil producing firm on Tuesday.
The company known as Saudi's crown jewel posted a net income of $16.66 billion for the first three months of the year, representing a 25% drop from the $22.21 billion recorded during the same period last year.
Revenue came in at $60.15 billion in the January-March period of 2020 -- a 16% decline from the $71.81 billion posted in the first quarter of 2019.
The company's capital expenditure, however, saw an increase of 3.2% to $7.4 billion in the first quarter of this year, from $7.17 billion for the same period last year.
"The COVID-19 crisis is unlike anything the world has experienced in recent history and we are adapting to a highly complex and rapidly changing business environment," Aramco President and CEO Amin H. Nasser said in the statement.
Due to the novel coronavirus (COVID-19), global oil demand continues to remain weak, putting a downward pressure on crude prices.
The price of international benchmark Brent crude averaged $63 per barrel in the first quarter of 2019, but averaged $50 a barrel in the same period of 2020, showing a 20.6% decline.
Aramco's initial public offering (IPO) was completed on Dec. 5, 2019 on the Saudi stock exchange Tadawul, securing the company’s market value at $1.7 trillion and making it the world's most valuable company by market capitalization.
The firm saw its market value surpass the $2 trillion mark on Dec. 12, 2019 -- its second day of public trading on the Tadawul.
By Ovunc Kutlu