Home / Business / Aramco, the world's most profitable oil giant, reveals its figures before it is published

Aramco, the world's most profitable oil giant, reveals its figures before it is published



Aramco, the Saudi oil giant, has this weekend set the start date for registration for its takeover bid (OPA). The company, which is the most profitable in the world with its net profits $ 111.1 billion will leave investors from November 17 to December 4 to make its purchase proposals for the title. [19659002] This takeover is considered the largest IPO in the world.

These dates are stated in a 658-page document published late on Saturday by the company on terms of entry, long-awaited and postponed on the markets

With its upcoming IPO, Saudi oil giant Aramco reveals its hitherto uncanny management, which will give investors the opportunity to weigh their strengths and weaknesses.

In accordance with the provisions, Aramco published in a document that presented its public takeover bid (OPA) the main risks and strengths of this transaction for investors.

Summary of the strengths and weaknesses of the oil giant that launched its takeover bid on November 1

7.

Weaknesses

Profit and cash flow:

The company's operating profit and cash flow are highly dependent on International supply and demand for oil and the price of a barrel

Aramco's profit depends on the price of crude oil has fluctuated sharply since mid-2014, from an average of $ 112 per barrel in June 2014 to a monthly average of $ 31.9 per barrel in January 2016.

Production level:

The Saudi government determines production, which means that Aramco not the last word on this

Climate change:

Concerns about climate change and global warming can reduce global demand for hydrocarbons and result in additional costs or investments for the world.

Geopolitical Risks:

Political and social concerns and actual or potential armed conflicts in the Middle East can affect society's operating results and economic situation.

Tensions between Saudi Arabia and its Iranian rival are particularly lively. In September, Riyadh and Washington accused Tehran of being behind attacks on major Aramco facilities, causing a temporary reduction in Saudi production.

Forces

Production and Reserves:

Aramco [19659021] produces 10% of the world's crude oil. In 2018, Aramco pumped 13.6 million barrels per day of oil equivalent, including 10.3 million crude oil.

Aramco's reserves amounted to 256.9 billion barrels of oil equivalents at the end of 2018, ensuring a production of 52 years at the current rate.

Production capacity:

The company has a capacity that allows it to quickly increase its production to 2 million barrels per day.

In July, Aramco signed a $ 18 billion contract to increase its production capacity with 550,000 bn of crude oil and 2.5 billion cubic feet of oil.

Low production cost:

Aramco's production costs are among the lowest in the world due to the unique nature of the Kingdom's geological formations.

The production cost 2018 was $ 2.8 per barrel.

Company finances e:

The company is the most profitable in the world and published $ 111.1 billion in net profit last year and $ 68.2 billion in the first nine months of 2019.

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