BRIEF-Saudi Aramco Q2 Profit Falls

SAUDI ARABIAN OIL CO: * Q2 SALES 123.23 BILLION RIYALS VERSUS 286.81 BILLION RIYALS YEAR AGO

* Q2 NET PROFIT AFTER ZAKAT AND TAX 24.62 BILLION RIYALS VERSUS 92.59 BILLION RIYALS YEAR AGO * Q2 SAW IMPACT OF LOWER CRUDE OIL PRICES AND DECLINING REFINING AND CHEMICALS MARGINS

* Q2 SAW DECREASE IN PRODUCTION ROYALTIES RESULTING FROM LOWER CRUDE OIL PRICES AND A DECREASE IN THE ROYALTY RATE FROM 20% TO 15% * Q2 SAW LOWER INCOME TAXES AND ZAKAT AS A RESULT OF LOWER EARNINGS

* Q2 SAW HIGHER OTHER INCOME RELATED TO SALES FOR GAS PRODUCTS * CERTAIN COMPARATIVE AMOUNTS IN CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2019 HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT PERIOD PRESENTATION. SUCH RECLASSIFICATIONS DID NOT IMPACT PREVIOUSLY REPORTED NET INCOME. THESE INCLUDE CERTAIN SALES OF CRUDE OIL AND RELATED PURCHASES OF REFINED PRODUCTS IN THE AMOUNT OF SAR 2.85 BILLION ($0.76 BILLION) AND SAR 5.39 BILLION ($1.44 BILLION), RESPECTIVELY

* NET INCOME: $6.6 BILLION (Q2) / $23.2 BILLION (H1) * Q1 DIVIDEND OF $18.75 BILLION PAID IN THE SECOND QUARTER; Q2 DIVIDENDS OF $18.75 BILLION TO BE PAID IN THE THIRD QUARTER

* NET ICASH FLOW FROM OPERATING ACTIVITIES: $12.3 BILLION (Q2) / $34.8 BILLION (H1) * COMPLETION OF SABIC TRANSACTION IS A MILESTONE FOR DOWNSTREAM GROWTH STRATEGY

* FREE CASH FLOW $6.1 BILLION (Q2) / $21.1 BILLION (H1) * UNDER THESE CHALLENGING MARKET CONDITIONS, ARAMCO CONTINUED ITS STRONG TRACK RECORD OF RELIABLE SUPPLY, ACHIEVING 99.8% RELIABILITY IN THE DELIVERY OF CRUDE OIL AND OTHER PRODUCTS IN THE SECOND QUARTER OF 2020

* CAPITAL EXPENDITURE WAS $6.2 BILLION IN THE SECOND QUARTER AND $13.6 BILLION FOR THE FIRST HALF OF 2020. * FREE CASH FLOW* WAS $6.1 BILLION IN THE SECOND QUARTER AND $21.1 BILLION FOR THE FIRST HALF OF 2020, RESPECTIVELY, COMPARED TO $20.6 BILLION AND $38.0 BILLION FOR THE SAME PERIODS IN 2019

* THE COMPANY DEMONSTRATED RELIABLE UPSTREAM PERFORMANCE WITH TOTAL HYDROCARBON PRODUCTION OF 12.7 MILLION BARRELS PER DAY OF OIL EQUIVALENT IN THE SECOND QUARTER OF 2020 * ARAMCO CONTINUES TO IMPLEMENT ITS CAPITAL SPENDING OPTIMIZATION AND EFFICIENCY PROGRAM, AND EXPECTS CAPITAL EXPENDITURE TO BE AT THE LOWER END OF THE $25 BILLION TO $30 BILLION RANGE FOR 2020

* ARAMCO ACHIEVED A HISTORIC HIGHEST SINGLE DAY CRUDE OIL PRODUCTION OF 12.1 MILLION BARRELS ON APRIL 2, 2020 * ARAMCO CEO SAYS STRONG HEADWINDS FROM REDUCED DEMAND AND LOWER OIL PRICES ARE REFLECTED IN OUR SECOND QUARTER RESULTS

* IN LINE WITH THIS STRATEGY, THE FADHILI GAS PLANT REACHED ITS FULL PRODUCTION CAPACITY OF 2.5 BILLION STANDARD CUBIC FEET PER DAY DURING THE SECOND QUARTER * FREE CASH FLOW WAS $6.1 BILLION IN THE SECOND QUARTER AND $21.1 BILLION FOR THE FIRST HALF OF 2020, RESPECTIVELY, COMPARED TO $20.6 BILLION AND $38.0 BILLION FOR THE SAME PERIODS IN 2019

* ARAMCO CEO SAYS YET WE DELIVERED SOLID EARNINGS BECAUSE OF OUR LOW PRODUCTION COSTS, UNIQUE SCALE, AGILE WORKFORCE, AND UNRIVALLED FINANCIAL AND OPERATIONAL STRENGTH * DOWNSTREAM BUSINESS CONTINUES TO DELIVER ON ITS LONG-TERM STRATEGY OF STRATEGIC INTEGRATION AND DIVERSIFICATION

* ARAMCO CEO SAYS THIS HELPED US DELIVER ON OUR PLAN TO MAINTAIN A SECOND QUARTER DIVIDEND OF $18.75 BILLION TO BE PAID IN THE THIRD QUARTER * ARAMCO, AN OGCI MEMBER, ACHIEVED AN UPSTREAM CARBON INTENSITY OF 10.4 KG CO2E/BOE IN 2019

* ARAMCO CEO SAYS WE WILL CONTINUE TO PURSUE OUR LONG-TERM GROWTH AND DIVERSIFICATION STRATEGY TO CAPTURE UNREALIZED AND ADDITIONAL VALUE FROM EVERY HYDROCARBON MOLECULE WE PRODUCE * COVID-19 PANDEMIC HAS SPREAD RAPIDLY THROUGHOUT THE WORLD, RESULTING IN SUBSTANTIAL REDUCTIONS IN CONSUMER AND BUSINESS ACTIVITY AND SIGNIFICANTLY REDUCED DEMAND FOR CRUDE OIL, NATURAL GAS AND PETROLEUM PRODUCTS

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