Saudi Aramco is world’s most profitable company in 2018

Blessing towing Company

By Kunle Adedoyin

Saudi Aramco, the state-owned oil firm of the Kingdom of Saudi Arabia, is the world’s most profitable company with a net profit of $111 billion.

The oil company which is the largest in the world, opened up its books for the first time ever as it plans to issue a $10 billion bond to acquire a 70% stake in Saudi Basic Industries Corporation (SABIC).

Aramco hopes to acquire the stake in SABIC, the national petrochemical company of Saudi Arabia for $69.1 billion.

By comparison, Royal Dutch Shell, the largest publicly traded oil company, made $23.4 billion net income during same period, while ExxonMobil, the largest US oil company, made $20.8 billion in 2018.

Apple, the world’s most profitable public company, made a net income of $59.4 billion in 2018, just a little over half of what Aramco made.

However, data from rating agencies Fitch and Moody’s, revealed that Aramco does not match up to its international counterparts in terms of cash generated per barrel.

Aramco is rated below Shell and Total’s AA- rating as it makes $26 per barrel of oil, compared to Shell’s $38 per barrel  and Total’s $31 per barrel.

The SABIC acquisition is dubbed as a plan B for the Saudi government; as an Initial Public Offering (IPO) of Aramco initially planned for 2018 would have valued the company at $2 trillion.

Moody’s reported that Aramco pays 50% of its profit on income tax, plus royalties of between 20% and 50% of the company’s revenue depending on the price of oil.


Leave a Reply

Next Post

JAMB said its two officials were almost burnt alive inside LASPOTECH

Mon Apr 1 , 2019
By Andy Chukwu Two officials of the Joint Admission and Matriculation Board (JAMB) were nearly set ablaze inside the Lagos State Polytechnic (LASPOTECH) on Monday. Ishaq Oloyede, JAMB registrar, said the officials were attacked at the mock center inside the institution. He said the two officials would also have been […]


Subscribe to notifications
Sign Up For Our Weekly Health Article By Dr. BolanleKeep you and your family safe and secured.

Discover new ways of maintaining a perfect health for yourself and your family.

Ask questions and get responses from industry experts

%d bloggers like this: