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Internal Environment of the company

As stated in the official web-site of Saudi Aramco “Starting with just a small group of intrepid explores, our history goes back more than 80 years to the sands of the Saudi desert”, its foundation traces back to 1933 on the agreement between Saudi Arabia and the Standard Oil Company of California. The initial drilling work began in 1935 after having surveyed the Saudi desert for oil resources. In 1938, the successful future for Saudi Arabia and Saudi Aramco was realized when commencement of commercial oil production was in action from Dammam No. 7, named Prosperity Well. Since this time Saudi Arabian Oil Company has been supplying the world with gasoline, diesel, LPG, kerosene, fuel oil, crude oil, propane, butane and paving asphalt. With its shipping facilities Saudi Aramco serves many countries of the world such as United Kingdom, USA, Japan, China and most industry leading countries.



According to the report of third quarter Saudi Aramco saw the sign of recovery due to improved economic conditions. The report of third quarter shows the significant drop in all fields besides its paid dividends which rose 5,362% in comparison with 2019’s report. Focusing on the period of nine months ended in September 30 there was no sign of improvement, particularly Net income, EBIT, free cash flow and ROACE saw significant drop. However, the company showed the downstream, the company experienced a significant improvement following the gradual increase in crude oil prices and continued portfolio-wide optimizations during third quarter of 2020. Exampling the outstanding third quarter Upstream developments:
- Aramco achieved a historic single day natural gas production of 10.7 bscfd on August 6, 2020, from both conventional and unconventional fields;
- Aramco’s exploration activities resulted in two successful unconventional field discoveries in the northern part of the Kingdom; one field with both oil and gas reservoirs and another field with a gas reservoir;
- The World Economic Forum (WEF) recognized the Khurais facility as a leader in the adoption and integration of cutting-edge technologies of the Fourth Industrial Revolution (4IR), and it became Aramco’s second facility to join WEF’s prestigious Global Lighthouse Network – a select group of just 54 facilities worldwide leading in these technologies. Khurais, one of Aramco’s largest oil fields, is a fully connected and intelligent field with technologies that include autonomous process control and remote operation and monitoring of equipment and pipelines.

Regarding as financial performance of Saudi Aramco, during the pandemic conditions company decreased its income values. In third quarter the income before income taxes and zakat, as well as Net income dropped to 43,9% and 44,6% which held the value of 44,072 and 21,291 USD dollars respectively in the term of 2019. Due to lower earnings the first nine months report also stated the decrease in Net income and Income before income taxes and zakat caused by Covid-19.

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