TheNationalUAE - 6/13/2019 12:01:04 PM - GMT (+2 )
Saudi Aramco, the top oil exporting company globally, will hold its first earnings call in August, after its financials for the last fiscal year, established it as the world’s most profitable company.
The state producer yesterday shared its annual results in a new investor relations section on its website, ahead of its half yearly presentation in August.
An independent audit of the company’s reserves revealed Saudi Aramco to be the world’s most profitable company, with $111.1 billion in net income, beating the likes of tech giants Apple and Google.
Greater financial transparency within Saudi Aramco comes amid plans by the government to list the company, which Saudi Arabia's government values at $2 trillion. Plans to list the company were delayed, as the state oil company merged with Saudi petrochemicals giant Sabic. Saudi Aramco agreed to acquire 70 per cent shares of Sabic, the region’s largest chemicals player as well as the kingdom's biggest energy listed company.
To finance the acquisition, Saudi Aramco issued a $12bn bond, with the prospectus detailing its finances.
In March Saudi Arabia's energy minister Khalid Al Falih told Okaz, Aramco's public listing would happen within the next two years.
Orders for Saudi Aramco's debut international bonds topped $100bn billion in April. Demand for the paper was the largest for emerging markets bonds since an orderbook value of more than $52bn for Qatar's $12bn bonds last year, and surpasses $67bn in demand for Saudi Arabia's inaugural bonds in 2016.
The Aramco bond attracted interest from a wide range of investors, as the oil producer's vast profits would put its debt rating – if unconstrained by its sovereign links – in the same league as independent oil majors such as Exxon Mobil and Shell.
Aramco's earnings before interest, tax, depreciation amortisation stood at $224bn last year.
Aramco also received the fifth-highest ratings from Fitch Ratings and Moody's Investors Service. Moody's assigned the Saudi company an A1 credit rating while Fitch rates it A-plus.
Updated: June 13, 2019 01:55 PM