RIYADH - The Saudi Arabian Oil Company (Aramco) on Sunday announced a net income of $49 billion in 2020, down from $88.2 billion in 2019, or 44.4 percent.

Aramco, in a statement, attributed the reduction to lower crude prices due to the COVID-19 pandemic, and Aramco CEO Amin Nasser described it as "one of the most challenging years in recent history."

However, the company also declared a dividend of $75 billion for the year, which Nasser said reflects the outcome of the company's strong performance.

Through its flexible capital program and prudent financial management, said Nasser, the company was able to adjust spending and focus on high-return opportunities.

Capital expenditure in 2020 was $27 billion due to the implementation of optimization and efficiency programs, representing a significant saving on capital expenditure of $33 billion in 2019.

Aramco expects capital expenditure for 2021 to be around $35 billion, significantly lower than the previous guidance of $40-45 billion.