Saudi Aramco’s net revenues in the first half of 2019 fell to $ 46.9 billion

UNITED STATES, WASHINGTON (VOP TODAY NEWS) — Saudi oil giant Aramco on Monday reported its first-half revenue for the first time in its history, citing a decline in the first half of 2019 to $ 46.9 billion.

In a rare announcement of its financial results, the company said in a statement, “the company’s net revenues amounted to $ 46.9 billion for the first half of 2019, compared to $ 53.0 billion for the same period last year.”

The decline in Aramco’s revenues, due to the decline in oil prices, amid speculation that the company is preparing to put its shares for public subscription.

This came as Reliance announced that it had agreed to sell a 20% stake in its oil and chemicals business – worth $ 15 billion – to the Saudi oil giant.

The Saudi firm said the deal was still “at very early stages.”

The statement did not mention the IPO plan.

“ Despite the decline in oil prices during the first half of 2019, we continued to achieve strong profits and free cash flows, supported by our ability to maintain our operational performance levels, expense management and financial discipline, ” the statement quoted Aramco Chairman Amin Nasser as saying.

This is the first time that the company has announced its half-year results.

The move comes after Aramco opened its books for the first time since its nationalization 40 years ago, to international rating agencies Fitch and Moody’s in April as part of its preparations to raise funds from investors.

– “Make a fuss” –

Aramco’s 5% IPO, which is expected to be the world’s largest IPO, is the cornerstone of Crown Prince Mohammed bin Salman’s economic reform program.

The London, New York and Hong Kong stock exchanges are vying for a share of the IPO.

The company hopes to raise up to $ 100 billion based on the company’s estimated value of $ 2 trillion.

But experts doubt that Aramco is worth it.

“Efforts are being made to make a noise about the company’s success and to appreciate its potential value,” Ellen Wald, who wrote a book on Saudi Arabia, told AFP.

“But the valuation of the company is not determined by the king, the prince or the company’s chief executive, but by the banks and markets.”

The Vision 2030, put forward by Prince Mohammed bin Salman in 2016, aims to stop the dependence of the Saudi economy, the largest in the Arab region, for oil by diversifying the sources of the economy.

Saudi Crown Prince Mohammed bin Salman, in an interview in June, reiterated Saudi Arabia’s commitment to the public offering of Aramco’s shares to the public “in due course”, adding that he expects this to be between 2020 and the beginning of 2021.

Aramco made a net profit of $ 111 billion last year, surpassing the world’s top five oil companies and generating $ 356 billion in revenue.

It also overtook Apple to be the most profitable company in the world. The US technology giant’s net profit was $ 50 billion last year.

Aramco estimates its proven oil reserves at 227 billion barrels and its hydrocarbon reserves at 257 billion barrels of oil equivalent, enough for more than half a century, a high and comfortable level, according to Fitch.


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