Saudi Aramco announces spending cut amid coronavirus pandemic

The big picture: The company said capital spending this year would range from $25 billion to $30 billion. That's down from almost $33 billion last year and, as Bloomberg notes, a sharp revision from prior plans to spend $35 billion–$40 billion in 2020.

• “The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape," president and CEO Amin Nasser said in a statement alongside Aramco's 2019 financial results.

By the numbers: Aramco on Sunday said its full-year profit in 2018 was $88 billion, compared to $111 billion the previous year.

• That's "primarily due to lower crude oil prices and production volumes," though declining margins in its refining and chemicals business played a role too, the company said.
• Nonetheless, Reuters points out that Aramco "remains the world’s most profitable company, beating Western oil majors such as Exxon Mobil Corp, and Apple Inc, which made $55 billion in its last financial year that ended in September."

What's next: Aramco, which began selling shares on the Saudi's domestic stock exchange last year, is cutting prices and planning to boost oil supplies to the market this year.

• Those plans follow this month's collapse of OPEC's joint production-limiting agreement with Russia, which is prompting a push for market share at lower prices.

Go deeper: Saudi Aramco’s profits slip as oil prices Fall (New York Times)