Aramco world’s most profitable company in 2018: Moody’s
By IAR DeskIt is the first time that the company has made a public disclosure of its earnings since its nationalization.
Photo: Courtesy Saudi Aramco
Saudi Aramco was the world’s most profitable company in 2018, a report by Moody’s has said. The rating company found that t the Saudi company, which for the first time made public its finances, made $111 billion last year. Moody]s rating is based on a prospectus for a massive bond offering Aramco will use use to raise funds for the purchase of 70% of Saudi Basic Industries Corporation (SABIC).
On 27th March, Saudi Aramco announced the signing of a share purchase agreement to acquire a 70% majority stake in SABIC from the Public Investment Fund of Saudi Arabia, in a private transaction for USD $69.1 billion. The remaining 30% publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire these remaining shares. The transaction is subject to certain closing conditions, including regulatory approvals.
It is the first time that the company has made a public disclosure of its earnings since its nationalization.
By comparison, Apple (AAPL), the world’s most profitable public company, made $59.4 billion in 2018, just over half as much as Aramco. ExxonMobil (XOM), the largest US oil company, made $20.8 billion, while Royal Dutch Shell (RDSA), the largest publicly traded oil company, made $23.4 billion.
According to Moody’s Saudi Aramco had revenue of $355.9 billion and $48.8 billion of cash on the books at the end of last year. This has partly been possible because of a 31% increase in average oil prices in 2018 compared to the previous years.
