RIYADH, May 12 (Xinhua) -- Saudi Arabian Oil Company (Aramco) announced on Tuesday its first-quarter net income of 16.7 billion U.S. dollars.
Al Eqtisadiya online local business newspaper reported that the net income reduced by 24.9 percent from the same period last year.
The company said in a statement on its website that the financial results demonstrate "financial and operational strength despite a challenging macro environment and lower energy demand caused by the COVID-19 pandemic."
Cash flow from operating activities was at 22.4 billion U.S. dollars in the first quarter, compared to 24.5 billion U.S. dollars in the same period of 2019, according to the company's report.
Free cash flow was 15.0 billion U.S. dollars in the first quarter, compared to 17.4 billion U.S. dollars in the same period last year.
The company's balance sheet shows that the gearing ratio decreased from -0.2% on December 31, 2019, to -4.9% on March 31, 2020.
First-quarter capital expenditures were 7.4 billion U.S. dollars, compared to 7.2 billion U.S. dollars for the same period in 2019. Considering market conditions and recent commodity price volatility, the company expects capital spending for 2020 to be between 25 and 30 billion U.S. dollars.
The report was released after the Saudi Energy Ministry directed Aramco to reduce the crude oil production by 1 million barrels per day in June.
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