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Arab Network
Saudi Aramco remains the world's most profitable company despite falling oil prices, Bloomberg said.
The company said in a report on its first-half earnings that its profit had dropped 12 percent to $ 46.9 billion in the first half of 2019.
Thus, Aramco easily outperformed giants such as Apple, Amazon and other major oil producers, many of whom suffered earnings losses due to lower prices for their products and crude oil.
"We have some of the largest and most productive reserves in the world," said Khalid Al-Dabbagh, senior vice president of the finance, strategy and development group, in an interview.
"The financial results of the company are second to none," he said, given the drop in oil prices "reflecting our resilience".
Aramco paid $ 46.4 billion in dividends in the first half, including $ 20 billion in profits for its owners, up from $ 6 billion last year.
According to Roy Price, CFO, this is especially important for potential investors before the IPO scheduled for 2020 or 2021.
The average Aramco crude sales price fell to $ 69 per barrel in the first half, up from $ 69 a year earlier, while crude output remained steady at 10 million barrels of oil equivalent per day.
Free cash flow increased nearly 7% to $ 38 billion, reflecting changes in working capital and lower capital expenditures.
"This gives the best financial performance that any investor looks for when evaluating the company. Aramco is ready for an IPO. "
Dabbagh reiterated that the decision on any stock exchange would be proposed and that as of the date of the process, the government would be responsible for it.
Saudi Arabia wants to raise a record $ 100 billion through the sale of a 5% stake in Aramco, making it the largest IPO in history and a win-win situation. winner for all the banks involved in the process.
Saudi Arabia has announced its intention to float Aramco three years ago. Aramco sold bonds to acquire a 70% stake in SABIC from the Saudi sovereign wealth fund. He said Monday that the acquisitions had not yet taken place.
Aramco is considering taking a stake in refining and chemicals at Reliance Industries Limited in India, looking for buyers for its crude oil production and diversification.
Reliance chairman, Mukesh Ambani, said in Mumbai that Aramco would acquire a 20% stake in the company's oil-to-chemicals conversion business, including the refinery of 1.24 million barrels per year. day (bpd) of Jamnagar on the west coast. in India.
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