January 23, 2021

Aramco, the Saudi oil company, is the company with the most benefits in the world

Aramco, the Saudi oil company, is the company with the most benefits in the world

The Saudi oil company Aramco is the company with more profits in the world and his Net profit reached 111,100 million dollars in 2018, according to data published today by two risk agencies, which have notified the company for the first time.

Aramco, the largest oil company in the world, had revenue of 355.9 billion dollars last year, according to Moody's, which offered data so far kept secret by the company controlled by the Saudi State.

The gross operating result (EBITDA) amounted to 224,000 million dollars in 2018, according to Fitch.

The margin of EBITDA was 63.7%, according to Moody's, which places it as a company with very high profitability.

The oil company also has a very high liquidity with 48,800 million dollars in cash, according to the agencies, which gave their rating to the company for the first time, before a rumored sale of bonds.

According to the agencies' reports, Aramco produced in 2018 a volume of 13.6 million barrels of oil equivalent (boe) per day and has access to proven reserves of 256,900 billion barrels of oil and gas.

Moody's granted a note of A1 and Fitch, an A +, which in both cases are conditioned by the rating of Saudi Arabia's sovereign debt.

Last Wednesday, Aramco announced the purchase of a 70% of the capital of SABIC, one of the largest petrochemical companies in the world, also controlled by Saudi Government, by 69,100 million of dollars, within the strategy of vertical integration of the company.

According to Moody's, Aramco's liquidity and financial flexibility will allow it to finance the acquisition of SABIC without the need to resort to external financing, even in low oil price scenarios.

The Saudi government announced plans in 2017 for privatize 5% of the capital of Aramco but last year it decided to paralyze the operation, which was expected to be the largest market flotation in history, without explaining the reasons.

The announced IPO was aimed at raising funds to finance the plans of the crown prince, Mohamed bin Salman, to reduce the country's dependence on oil.


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