Aramco made $33.8bn in revenue in H1 2017: report
Saudi Arabian oil giant has low costs and very little debt as it approaches a possible stake sell-off later this year.
Saudi Aramco made $33.8bn in net revenue in the first half of 2017 according to exclusive figures seen and cited by news agency Bloomberg. The numbers also reveal that the company is virtually free of debt and maintains production costs that are substantially lower than other competitors.
The oil giant itself, when asked to comment on the data described it as “inaccurate” adding that it” does not comment on speculation regarding its financial performance and fiscal regime.”
But the data will provide a fascinating glimpse into the world’s largest oil exporter and, if the figures are precise, suggests Aramco is comfortably surpassing global leaders such as Apple and US hydrocarbon rival ExxonMobil.
The firm’s intention to sell a 5% stake in what could prove to be the world’s largest ever initial public offering has been heavily reported and the sale could happen as early as later this year. The kingdom’s increasingly visible and influential Crown Prince, Mohammad bin Salman, has speculated that Aramco’s value could reach around $2tn, pricing the share sell-off at $100bn. The funds raised are slated to be used to further the country’s economic diversification plans.
Some oil analysts have questioned this estimate suggesting a figure of $1-1.5tn as being more realistic.
However, despite the numbers surely proving impressive for prospective investors, they also reveal that the company’s bottom-line is very much dependent on the health of the global oil price. Bloomberg’s report also states that in H1 2016, when the oil price was significantly lower, Aramco only managed to achieve around $7bn in revenue by comparison.