Private

For the 1st time ever, mysterious Saudi Aramco reveals its financial details

Snacks / Monday, August 12, 2019

Not Big Oil. Biggest Oil... Saudi Arabian Oil Co — aka "Aramco" — just stuck its financial statements up on the web for the first time ever. It didn't have to (it's not publicly traded), but it's trying to pique some investor intrigue. Here's what Earth's most profitable company looks like:

  • Private: Saudi Aramco has 1 shareholder — the Kingdom of Saudi Arabia — since 1976, when the government took full control of what was then an American company. It's still 100% private today.
  • Public-curious: In April it interacted with public markets for the first time, offering $15B in bonds to raise some money for itself.
  • Public: The Saudi government is thinking about IPO-ing Aramco to sell some shares to the markets in exchange for cash — that's why it wants to show what some of its numbers look like.

The home run record was 16. Then Babe Ruth hit 29. Then he hit 54... Aramco is the Bambino of profits. Behold, its elusive financial stats from the 1st half of 2019:

  • Profits: $47B. That's double what Apple made. Double. (And almost 8x Amazon).
  • Dividends: It delivered almost 100% of that profit to its 1 single shareholder as a dividend so government services for 33M people could be paid for.
  • Oil: It pumps out 10M barrels of crude oil per day. Only Russia and the US (two countries) produce more oil than this company.
  • Fun Fact: And it's still got half-a-century's worth of reserves to tap from the ground.

Operation: Modernize... The next Saudi King (Crown Prince Mohammed Bin Salman) was all the rage trying to modernize his intensely conservative country (women just got the right to drive). That plan was put on ice after the murder of journalist Jamal Khashoggi (believed to be at the Crown Prince's order). Now he's venturing out of the moral doghouse and the finance world doesn't seem to mind. The biggest IPO ever could be coming.

Get Your News

Subscribe and thrive

Snacks provides fresh takes on the financial news you need to start your day. Chartr provides data visualizations on business, entertainment, and society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.