Saudi Arabia’s Aramco is the world’s most profitable company, according to a bond prospectus the firm issued to investors to fund a stake in Sabic. The oil giant, which could be part of the world’s biggest ever initial public offering, released a statement offering a first glimpse into its profits. Its net income jumped 50% to $111 billion last year thanks to a rebound in oil prices.
That compares with:
Around $60 billion for Apple
$21 billion for Exxon MobilCorp
$10 billion for Amazon.com
Looking at the tech industry revenues which are highlighted quite often, it’s interesting to see that exploiting the resources of planet earth is still the by far most profitable business in the world.
Saudi Aramco, the Saudi national oil company, is revealing a few of its best kept secrets this week. Fitch Ratings has released the press release for its first ever #debts rating for the company (A+), including some #financial information. In 2018, Aramco’s earnings before interest, #tax, depreciation and amortization were $224 billion.
Saudi Arabia’s Crown Jewel, Saudi Aramco, generated net income of $111 billion last year. That is more than Microsoft, Apple and Alphabet’s profit combined making it the most profitable company on earth.
The Saudi kingdom’s influence on the state oil producer via high taxation is also denting its profitability and credit-worthiness, with cash generated per barrel below that of Big Oil companies such as Royal Dutch Shell Plc. That’s getting in the way of Aramco achieving a much higher credit rating.
I’ve seen exploitation of the world’s resource first hand and I even participated. After 6 years, 30 colleagues dead and witnessing the theft and exploitation of more than one African country my path changed. Exploitation is the key word in a world that is digging a hole to drown in black gold.
The world’s most profitable business is an oil company. Its net income increased 50% to $111 billion last year thanks to a rebound in oil prices.
The Saudi kingdom’s influence on the state oil producer via high taxation is also denting its profitability and credit-worthiness, with cash generated per barrel below that of Big Oil companies such as Royal Dutch Shell Plc. That’s getting in the way of Aramco achieving a much higher credit rating.
We got a deeper insight into the financials of @SaudiAramco today, the worlds most profitable company.
Key highlights
– profit for 2018 was $111bn, higher than worlds most valuable listed company Apple, and energy industry peers @RoyalDutchShell and @ExxonMobil
– Aramco paid $58bn in dividends to the Saudi government, plus 50 percent tax
– Aramco will pay for its $69bn acquisition of a stake in @Sabic in installments until 2020, and will pay PIF an additional $500m for the privilege
Next up, the company’s debut international bond sale. $10bn, or even more?
Impressive. This should pave the way for their long awaited IPO, now expected by early 2021.