Saudi Aramco is readying for the public debut

Officially known as Saudi Arabian Oil Company, Saudi Aramco is the world’s largest oil and gas company by revenue. Engaged in the petroleum and the natural gas business, its headquarters is based in Dhahran, Saudi Arabia.

Although the company stated that their profit fell during the first half due to the fact that oil prices being low and volatile, they also announced a free cash flow of $38 billion during the same time period. Compared to the previous year, the half-year earnings were down 12%. Despite the said plunge, Saudi Aramco’s net profit reached $46.9 billion which proved its position as the most profitable company in the world in terms of earnings.

From the looks of it the Initial Public Offering of Saudi Aramco is going to be the world’s largest. The oil producer expects their IPO to take place by 2020-2021.

“We will announce (the IPO) depending on their (the government’s) perception on what would be the optimum market condition,” said Aramco’s senior vice president of Finance, Strategy & Development, Khalid al-Dabbagh, as reported by Reuters.

In other news, Saudi Aramco is ready to acquire 20% stake in Mukesh Ambani’s Indian multinational conglomerate company, Reliance Industries Limited for about $75 Billion.

“India is a large country with a large demand, and a growing demand [for energy],” Al-Dabbagh stated.

(Reference: CNBC, The Guardian, Quartz, Reuters, Oilprice.com)
(Featured image source: Simon Dawson | Bloomberg | Getty Images)