the State oil company of Saudi Arabia Saudi Aramco reported a sharp drop in net profit in the first quarter of this year. Oil revenues of the Kingdom have fallen by 25 percent compared to the same period last year, RIA Novosti reported with reference to the statements of the company.

Revenue from January to March amounted to 60,151 billion, which is 16.2 percent less than a year ago, and oil production fell to 9.8 million barrels per day (minus 3 percent).

the forecast capex for the year 2020 remains at the level of 25-30 billion dollars, and in annual terms, the profit does not even reach $ 17 billion.

In the second quarter amid a drastic decline in oil prices and record production cuts, Saudi Aramco indicators deteriorate significantly.

may 11, Saudi Arabia announced an additional outside which entered into force on 1 may transactions OPEC+, the restriction of production by a million barrels a day since June.

currently, the Kingdom, according to the assumed quotas, produces 8.5 million barrels. In the first month of summer production will be reduced to 7.5 million is the maximum level of commitment among all parties to the transaction. The reductions will be joined by Kuwait and the United Arab Emirates (UAE), but they together will be removed from the market 180 thousand barrels.

Earlier, Saudi Arabia also declined to a record discount on raw materials for European buyers, which was introduced in the framework of a price war with Russia.

the Crisis in the oil market forced the Kingdom from June 1 to suspend payment of a living wage, and from 1 July to raise three times the value-added tax, to fifteen percent. Finance Minister Mohammed al-Jadaan explained that to go to such measures was necessary due to a significant budget deficit in the first quarter, reached nine billion dollars.