Saudi Aramco said in a report on its first-half profit that the profit fell 12% to $46.9bn in the first six months of 2019.
Thus, the company would have easily bypassed giants such as Apple, Amazon and other big oil producers, many of which suffered a decline in profits due to lower prices of products and crude oil.
“We have some of the largest and most productive reserves in the world,” Khalid Al-Dabbagh, the company’s senior vice president for finance, strategy and development, said in an interview.
Al-Dabbagh added that “the company’s financial results are unrivaled,” in light of the decline in oil prices is “a testimony to our resilience”.
Saudi Aramco paid $46.4bn in dividends in the first half, including $20bn in dividends to its owners, compared with $6bn for the last year.
According to Roy Price, CFO, this is especially important for potential investors ahead of the IPO planned for 2020 or 2021.
- The profits of Saudi Aramco surpassed Apple, Amazon, and other oil companies.
The average selling price of Aramco crude fell to $66 a barrel in the first half from $69 a year earlier, while crude production remained steady at 10 million barrels of oil equivalent on a daily basis.
Free cash flow increased by almost 7% to $38bn due to movements in working capital and lower capital expenditure.
“All this results in the best financial performance any investor is looking for when evaluating Saudi Aramco. Saudi Aramco is ready for an initial public offering,” Khalid Al-Dabbagh said.
Al-Dabbagh repeated that the decision on any stock exchange will be offered and the date to proceed with process, is the responsibility of the government.
Saudi Arabia, for its part, wants to raise a record of $100bn from the sale of a 5% stake in Aramco, making it the biggest IPO in history and a win-win situation for any banks involved in the process.
Saudi Arabia announced plans for an IPO of Aramco three years ago. Aramco sold bonds to buy a 70% stake in SABIC from the Saudi sovereign wealth fund. It was said on Monday that the acquisitions had yet to take place.
Aramco plans to buy a stake in the refining and chemicals business of Reliance Industries Limited (RIL), India, seeking buyers for its crude oil production and diversification.
Reliance Chairman Mukesh Ambani commented that Aramco would acquire a 20% stake in the company’s oil-to-chemicals conversion business, including the 1.24 million bpd Jamnagar refinery on the west coast of India.