Saudi Aramco profit falls 25% in first quarter

Energy giant Saudi Aramco posted a 25 percent slump in first-quarter profits and said the coronavirus crisis which triggered a crash in oil prices would weigh heavily on demand in the year ahead.

The world's largest listed firm posted a net profit of 62.5 billion riyals (16.66 billion dollars) in the three months to March, compared to 22.2 billion dollars a year earlier.

"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," CEO Amin Nasser said in a statement.

The company said that the drop in earnings mostly reflected a decline in crude oil prices, as well as shrinking margins in the refining and chemicals businesses.

Aramco said that a steep decline in global demand for energy caused by the pandemic would undermine its full-year results. "Longer term we remain confident that demand for energy will rebound as global economies recover," Nasser said.

Oil prices slumped to nearly two-decade lows in March, losing almost two-thirds of their value as the coronavirus pandemic sent the world into recession. Moreover, prices plummeted further in April amid a price war between Russia and Saudi Arabia as the major producers scrambled to secure market share.

On Monday, Riyadh announced it would cut output by more than it had pledged -- reducing by an additional 1.0 million barrels per day-- providing markets with a much-needed boost as the world economy cautiously emerges from lockdown.