With the coronavirus pandemic pushing oil prices high, Aramco's payments to the Saudi Arabian government dropped by 30% last year, despite the firm retaining its $75 billion dividends.

In 2020, the world's largest oil producer paid 413 billion riyals ($110 billion) in dividends, royalties, and income taxes, according to a financial statement released by Aramco on Monday. The money is a vital source of revenue for the government of Saudi, which saw its budget deficit deepen last year as the economy entered a slump.

Aramco, of which is 98% is owned by the Saudi government, kept its promise to pay a $75 billion dividend, the highest of any publicly traded firm. Royalties and taxes, on the other hand, were cut in half, to about $41 billion.

After taking on $90 billion in loans and bonds, Aramco's debt grew to $162 billion by the end of 2020. The company's net debt-to-equity ratio increased to 55% from 26% at the end of 2019. Many of those liabilities were used to finance the Saudi sovereign wealth fund's $69 billion purchase of chemicals manufacturer Sabic.

The government charges Aramco a royalty fee for every barrel of oil it generates, in addition to taxes and dividends, to help the state raise revenue. Since royalties are related to oil prices, which dropped by around 20% last year, royalties have collapsed along with the oil prices.

The upstream company, of oil and natural gas production, accounts for the majority of Aramco's profits. The company's profits before interest, taxes, and zakat – a local charitable donation – fell by 40% to $110 billion.

On an Ebitz basis, the downstream segment, which covers refining, additives, and retail fuel sales, lost $5.4 billion, which was more than the $927 million loss in 2019. With the Sabic acquisition, Aramco expects to nearly double its refining potential this decade and become a global leader in chemicals.

Last year, Aramco restructured its downstream operation, which had last turned a profit in 2018, and established a separate division devoted to "portfolio optimization," which examines the company's existing assets and develops strategies to tap new markets.