Question

company analysis the Saudi Arabian Oil Company

background and finance analysis

Answer 1

The Saudi Arabian Oil company is Saudi Aramaco.

Saudi Aramco, also called Saudi Arabian Oil Company, formerly Arabian American Oil Company, Oil company founded by the Standard Oil Co. of California (Chevron) in 1933, when the government of Saudi Arabia granted it a concession. Other U.S. companies joined after oil was found near Dhahran in 1938. In 1950 Aramco opened a pipeline from Saudi Arabia to the Mediterranean Sea port of Sidon, Lebanon. It was closed in 1983 except to supply a refinery in Jordan. A more successful pipeline, with a destination on the Persian Gulf, was finished in 1981. In 1951 Aramco found the first offshore oil field in the Middle East. In the 1970s and ’80s, control gradually passed to the Saudi Arabian government, which eventually took over Aramco and renamed it Saudi Aramco in 1988.

As part of plans to attract foreign investment in Saudi industries, spearheaded by Deputy Crown Prince Mohammed bin Salman, Saudi Aramco was slated to open up an initial public offering (IPO) as early as 2017. The move suffered setbacks, however, and was repeatedly delayed. In September 2019 two of Saudi Aramco’s oil-processing facilities were attacked, including its largest, in Abqaiq, causing significant damage and temporarily disrupting its production capacity.

from Financial point of view, The first official glimpse of Saudi Aramco’s financial performance confirms the state-run oil giant can generate profit like no other company on Earth: net income last year was $111.1 billion, easily outstripping U.S. behemoths including Apple Inc. and Exxon Mobil Corp. Aramco reported cash flow from operations of $121 billion and $35.1 billion in capital spending, and paid $58.2 billion in dividends to the Saudi government in 2018, according to Moody’s. In a presentation to potential bondholders, the company said its "ordinary dividend" last year was $52 billion. the 2018 revenue of this company in 2018 was $355.9 billions.