Aramco Slashes Spending as Virus Erases Oil Demand Growth

Saudi Aramco is slashing planned spending this year in the first sign that plunging demand and the oil-price war the kingdom unleashed are hitting home. Capital expenditure will be between $25 billion and $30 billion in 2020 and spending plans for next year and beyond are being reviewed, Aramco said. The oil giant is lowering that range from the planned $35 billion to $40 billion announced in its IPO prospectus, and compares with $32.8 billion in 2019. “That was the surprise,” Ahmed Hazem Maher, an analyst at EFG Hermes in Cairo, said of the spending cut. “They’re adding production in a low price environment so their cash flows could be impacted.”

Source: https://www.bloomberg.com/news/articles/2020-03-15/aramco-profit-falls-21-on-lower-oil-cuts-2020-capex-guidance?srnd=premium-middle-east

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