While revealing the finances for the first time, Saudi Aramco came through as the most profitable company in the world. As per the note from Moody’s, the oil company from Saudi had made $111 billion in the previous year. The rating agency based their report on a prospectus for a huge offering of bonds, which Aramco hopes to make use of to help finance the purchase 70% of Saudi Basic Industries Corporation. Aramco expects to buy that stake in the petrochemical company, which is owned by the State, for an amount of $69.1 billion.
As a comparison to this, Apple, which is the most profitable public company in this world, made an amount of $59.4 billion in the year 2018. This is just more than half as much the amount as Aramco. On the other hand, ExxonMobil, the largest US oil company happened to make $20.8 billion. Royal Dutch Shell, the biggest publicly traded oil company accumulated $23.4 billion. As per the note from Moody, the revenue of Aramco was $355.9 billion and had cash of $48.8 billion on the books right at the end of the previous year. This was largely helped by an increase of 31% in the average oil prices in 2018 compared to that in the year 2017.
Last year, Aramco had planned to go public. It might well have put 5% of their organization up for sale. This could have been the largest ever initial public offering. According to reports, the Saudis were looking to raise an amount of $100 billion in the offering, which would take the valuation of the company at $2 trillion. This is 2 times that of Microsoft, which happens to be the most valuable public company with a market valuation of $904.8 billion.
Dale Bennett was a Service Analyst by profession and writing is his calling. Owing to his interest, he has quit his 9 to 5 job and has been working as an author at Today News Air. He is a voracious reader and an avid traveller.