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Saudi Energy Minister Says Saudi Crown Prince To Decide On Soon To Come Aramco IPO


10/30/2019


Saudi Energy Minister Says Saudi Crown Prince To Decide On Soon To Come Aramco IPO
The Crown Prince of Saudi Arabia Mohammed bin Salman will soon be taking a decision about the initial public offering for the state-owned oil company Saudi Aramco which can be expected to be launched soon, said the energy minister of Saudi Arabia.
 
"It is going to come soon ... but it will come at the right time with the right approach and definitely with the right decision," Prince Abdulaziz bin Salman said in a speech at the Future Investment Initiative conference in Riyadh.
 
"And it will be a Saudi decision first and and foremost," he said. "Specifically, Prince Mohammed's decision," he added.
 
On the other hand, reports claimed that  in the first nine months of the year, Saudi Aramco earned $68 billion which has ensured its position as the most profitable company of the world.
 
The reports quoting sources with knowledge about the matter said that financial analysts working on its planned initial public offering were disclosed the unaudited net figure by the state-owned oil producer. No comparable numbers for the same period a year ago had been published by Aramco and there were no comments about the reports available from the company.
 
According to a latest report by Saudi television news channel Al Arabiya, the IPO process will begin on Sunday.
 
Saudi Aramco had earned the position of being the highest-earning businesses in the world after it had disclosed financial results for the first time earlier this year for 2018 which showed that the company had made a profit of $111 billion for last year. The net profits that had been made by Apple Inc for the entire of 2018 has been easily surpassed by Aramco in the first nine months alone. Apple is the most profitable publicly traded company in the world. The earnings in the first nine months by Aramco is more than the annual earnings of Exxon Mobil Corp. which is the largest publicly traded oil company in the world.
 
This disclosure of the financial performance of the crown jewel of Saudi Arabian business is ostensibly done keeping the soon to be launched IPO in mind and the need for investors to know the financial position of the company. The Saudi Aramco IPO is expected to be the largest ever and is expected to be launched by the end of the year. The Crown Prince Mohammed Bin Salman plans to use the money generated from the Aramco IPO for financing a plan to shift the Saudi economy away from dependence on oil.
 
However even with the magnanimous profits made by the company, the claim of the Saudis that Aramco be valued at $2 trillion or more is not be accepted by all investors.
 
According to the report in the television news channel Al Arabiya, the process for the IPO will begin this Sunday and it is likely that the PIO will be launched on December 11. Aramco has already promised to pay dividend of at least $75 billion in 2020 to its shareholders. .
 
(Source:www.theeocnomictimes.com)